Refer to Table 14-1. Let's suppose the game starts with each firm adhering to its original budget so that Godrickporter earns a profit of $6,000 and Star Connections earns a profit of $12,000
Is there an incentive for any one firm to increase its advertising budget?
A) No, neither firm has an incentive to raise its advertising budget.
B) Yes, Godrickporter has an incentive to increase its advertising budget, but Star Connections does not.
C) Yes, Star Connections has an incentive to increase its advertising budget, but Godrickporter does not.
D) Yes, both firms have an incentive to raise their advertising budgets.
B
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If the cost of labor increases the isocost line will
A) stay the same. B) shift outward in parallel fashion. C) rotate inward around the point where only capital is employed in production. D) shift inward in parallel fashion.
Tariff accounts for 32% of the total government revenue in the U.K. and only 1.2% in India
a. True b. False Indicate whether the statement is true or false
An economy has two workers, Paula and Ricardo. Everyday they work, Paula can produce 4 computers or 16 shirts, and Ricardo can produce 6 computers or 12 shirts. What is the opportunity cost for Ricardo to produce one computer?
A. 4 shirts B. 2 shirts C. ½ shirt D. ¼ shirt
Mutually beneficial trade will occur whenever the exchange rate between the goods involved is set at a level where: a. each country can export a good at a price below the opportunity cost of producing the good in the domestic market. b. each country can import a good at a price below the opportunity cost of producing the good in the domestic market. c. the exchange ratio is exactly equal to
the opportunity cost of producing the good in each country. d. each country will specialize in the production of those goods in which it has an absolute advantage.