A strategy that is better than any alternative strategy - regardless of what the other firm does - is called a:
A. Dominant strategy
B. Nash strategy
C. Positive-sum strategy
D. Best strategy
A. Dominant strategy
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If demand is inelastic, the absolute value of the price elasticity of demand is
A) less than one. B) greater than one. C) one. D) greater than the absolute value of the slope of the demand curve.
In the four-quadrant diagram of the specific factors model, the graph in the upper right quadrant is a country's
A) production possibility frontier. B) labor allocation constraint. C) production function for food. D) production function for cloth. E) labor supply curve.
Suppose the economy is initially in equilibrium where real GDP equals potential GDP and the inflation rate is at the target rate. Other things equal, a housing boom will cause aggregate expenditures to increase, which will result in
A) an increase in aggregate demand and an increase in the inflation rate. B) an increase in aggregate supply and an increase in the inflation rate. C) an increase in aggregate demand and a decrease in the inflation rate. D) an increase in aggregate supply and a decrease in the inflation rate.
Zinc Communications developed a new type of cellular telephone that has a three-dimensional (3-D) screen. The company holds a patent on this technology, so they are the only seller of the 3-D phone when it is introduced
Over time, other companies introduce phones that are similar but not identical (i.e., they do not violate the patent held by Zinc). What happens to the demand for 3-D phones facing Zinc and to the profit-maximizing price for the 3-D phone as these similar products enter the market? A) Demand becomes less elastic, price increases B) Demand becomes less elastic, price declines C) Demand becomes more elastic, price increases D) Demand becomes more elastic, price declines