Adkins Air is the only seller offering service directly from Milwaukee to Greensboro. The market is contestable. Thus the Nash Equilibrium for a game between Adkins Air and a potential entrant is when the potential entrant
A) enters and Adkins earns a normal profit.
B) enters and Adkins earns an economic profit.
C) does not enter and Adkins earns a normal profit.
D) does not enter and Adkins earns an economic profit.
C
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Suppose x is an inferior good. Then we will overestimate the deadweight loss from taxes on consumption good x if we use the uncompensated demand curve rather than the marginal willingness to pay (or compensated demand) curve.
Answer the following statement true (T) or false (F)
Financial institutions for the poor have been neglected because
a. large banks considered rural branches to be unprofitable b. economists and others believed that poor people were unable to save c. the poor often save in non-monetary forms d. small farmers and business people were considered to be untrustworthy borrowers e. all of the above
Evidence from the United States and Japan on "multifactor productivity" shows it to be highly ________, which is ________ with the RBC theory of technological shocks and their consequences for the business cycle
A) procyclical, consistent B) procyclical, inconsistent C) countercyclical, consistent D) countercyclical, inconsistent
If the government has enough knowledge about a market and the damage it causes through pollution, it can force the socially optimal output
A) through an emission fee. B) using a ban on pollution. C) by deregulating to eliminate the monopoly. D) All of the above.