Answer the next question based on the following payoff matrix for a duopoly in which the numbers indicate the profit in millions of dollars for each firm. Firm A? High PriceLow PriceFirm BHigh priceA = $250A = $325??B = $250B = $200?Low priceA = $200A = $175??B = $325B = $175If firm B adopts the high-price strategy, then firm A would adopt the
A. low-price strategy and earn $325.
B. high-price strategy and earn $250.
C. high-price strategy and earn $200.
D. low-price strategy and earn $175.
Answer: A
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Currency in circulation is currency that meets all of the following criteria except for currency
A) outside the Treasury. B) outside the Federal Reserve. C) held as vault cash in banks. D) held by the non-bank public.
Why does the trade-off between consumption goods and capital goods represent a trade-off between the present and the future?
What will be an ideal response?
For each size of plant a manufacturer could build, there is a different
a. long-run average fixed cost curve b. long-run average variable cost curve c. short-run average total cost curve d. long-run average total cost curve e. long-run marginal cost curve
Which of the following is an example of double counting in regards to GDP?
a. counting the value of two products often bought together, such as chips and dip b. counting the value of sweaters that are inferior quality c. counting the value of plastic used to make model kits as well as the final kit itself d. counting the value of products that have two or more components such a TV with a remote control