Suppose that you value a hat from your favorite university at $20 . The university bookstore has the hat on sale for $15 . You purchase the hat but lose it on the way home. What should you do? Assume that losing the hat does not alter how you value it
a. Go back to the bookstore and purchase another hat.
b. Wait until the cost of the hat falls to $15 or less before purchasing another hat.
c. Wait until the cost of the hat falls to $5 or less before purchasing another hat.
d. Do not purchase another hat regardless of the price.
a
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Suppose Cournot duopolist firms operate with each having a cost of 30qi (i = 1,2 ) so that each firm's marginal cost is 30. The inverse market demand curve is P = 120 - Q where Q = q1 + q2. At the Nash-Cournot equilibrium, the market price, P, is
A) 30. B) 45. C) 60. D) 90.
An increase in the price of fish will shift the demand curve for chicken to the right (assuming fish and chicken are substitutes)
Indicate whether the statement is true or false
The idea that inflation by itself reduces people's purchasing power is called
a. the inflation tax. b. menu costs. c. the inflation fallacy. d. shoeleather costs.
Using the above table, the employment rate is
A. 69.1 percent. B. 65.6 percent. C. 48.5 percent. D. 95.0 percent.