If Happy Feet chooses to Ad and Best Nails then chooses to Ad, Happy Feet earns ________ million in net profit and Best Nails earns ________ million.
Happy Feet wants to prevent Best Nails from entering the nail salon market. The above game tree illustrates the different strategies and corresponding payoffs for the two firms. Both Happy Feet and Best Nails have the same strategies of advertising (Ad) or not advertising (No Ad). The payoffs represent net profit in millions.
A) $4; $1
B) $1; $4
C) $5; $1
D) $2; $3
B) $1; $4
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Land used for commercial Christmas trees can also produce pulpwood. Therefore, an increase in the expected market price of Christmas trees tends to
A) reduce the demand for Christmas trees. B) increase the supply of Christmas trees. C) increase the cost of producing pulpwood. D) decrease the cost of producing pulpwood.
Under the binding price ceiling of $4, what would be the black market price?
A. $14 B. $12 C. $16 D. $10
Which of the following does the United States export?
A. Computers, but not wheat. B. Wheat and corn, but not automobiles. C. Computers, corn, wheat, lumber, and automobiles. D. Automobiles, but not lumber.
Budget deficits are appropriate during
A. recessions, but not inflations. B. inflations, but not recessions. C. recessions and inflations. D. neither recessions nor inflations.