The production possibilities frontier is a graph that shows the various combinations of outputs that the economy can possibly produce given the available factors of production and the available production technology
a. True
b. False
Indicate whether the statement is true or false
True
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Firms bundle their products because:
A. it is technologically efficient to do so. B. it can increase a firm's ability to extract consumer surplus. C. it can increase a firm's profits. D. All of these are reasons firms bundle their products.
Plato and Aristotle were both concerned about how an unequal distribution of income could cause political instability
Indicate whether the statement is true or false
The normal level of unemployment that persists in an economy in the long run is:
A. also called the equilibrium rate of underemployment. B. zero when the market is equilibrium. C. always achieved in the real world. D. called the natural rate of unemployment.
Refer to the information provided in Table 14.1 below to answer the question that follows. Table 14.1B's Strategy ?Raise PriceDon't Raise Price?RaiseA's profit $3,000A's profit $10,000?PriceB's profit $3,000B's profit $15,000A's Strategy????Don'tA's profit $15,000A's profit $5,000?RaiseB's profit $10,000B's profit $5,000Refer to Table 14.1. Firm A?s optimal strategy is
A. to raise the price of its product. B. to not raise the price of its product. C. dependent on what Firm B does. D. indeterminate from this information, as no information is provided on Firm A?s risk preference.