According to the matrix shown, how much will be produced if both firms collude?
This prisoner's dilemma game shows the payoffs associated with two firms, A and B, in an oligopoly and their choices to either collude with one another or not.
A. 50 million units
B. 65 million units
C. 70 million units
D. 85 million units
A. 50 million units
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The program Save More Tomorrow (SMarT) is:
A. an experimental "forced savings" program. B. the "forced savings" program in Italy. C. a voluntary savings program that involves people learning how to find high-interest accounts so their savings is worth more tomorrow. D. a voluntary savings program that commits a fraction of future raises to be put directly into savings.
For a particular competitive firm, the minimum value of average variable cost (AVC) is $12 and is reached when 200 units of output are produced. For the same firm, the minimum value of average total cost (ATC) is $15 and is reached when 230 units of output are produced. Which of the following statements is correct?
a. In the short run, the firm will shut down if the price of its product is $11. b. In the long run, the firm will shut down if the price of its product is $14. c. If the price of its product is $12, then the firm's loss if it produces 200 units of output is the same as its loss if it shuts down. d. All of the above are correct.
Refer to the graphs shown. The effect of increased consumer income and higher production costs on a normal good is most likely shown in:
A. a. B. b. C. c. D. d.
Max is shopping for a new winter jacket. The salesperson explains that two coats have identical features-the Columbia jacket that costs $120, and the Burton jacket that costs $300. Max buys the Burton jacket. Burton jackets may be a good example of:
A. an inferior good. B. a Giffen good. C. a Veblen good. D. a normal good.