The above figure shows a payoff matrix for two firms, A and B, that must choose between a high-price strategy and a low-price strategy. For firm B,
A) setting a high price is the dominant strategy.
B) setting a low price is the dominant strategy.
C) there is no dominant strategy.
D) doing the opposite of firm A is always the best strategy.
B
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The chairman of the Federal Reserve is considered one of the most important economic positions in the world because this person has significant direct control over the conduct of:
A. fiscal policy in the United States. B. monetary policy in the United States. C. international trade policy in the United States. D. government budget in the United States.
Opportunities created by trade:
A) induce a greater degree of specialization. B) are evidenced by higher opportunity costs of production. C) are a result of absolute advantage. D) are few and far between.
Which of the following statements is true about productive and allocative efficiency?
A. Realizing allocative efficiency implies that productive efficiency has been realized. B. Productive efficiency can only occur if there is also allocative efficiency. C. Society can achieve either productive efficiency or allocative efficiency, but not both simultaneously. D. Productive efficiency and allocative efficiency can only occur together; neither can occur without the other.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The marginal rate of transformation in moving from Point B to Point A is
A. -2/3. B. -3/4. C. -1.5. D. -20.