Firms in a perfectly competitive market achieve both allocative and productive efficiency in the short run
a. True
b. False
B
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Disney and Fox must decide when to release their next films. The revenues received by each studio depend in part on when the other studio releases its film. Each studio can release its film at Thanksgiving or at Christmas
The revenues received by each studio, in millions of dollars, are depicted in the payoff matrix above. Which of the following statements CORRECTLY describes Disney's strategy given what Fox's release choice may be? A) If Fox chooses a Thanksgiving release, Disney should choose a Christmas release. B) If Fox chooses a Christmas release, Disney should choose a Thanksgiving release. C) Disney should release on Thanksgiving regardless of what Fox does. D) Both answers A and B are correct.
If the price of one input changes, generally the firm will change its use of both inputs
a. True b. False Indicate whether the statement is true or false
Under the adaptive expectations theory, expansionary monetary and fiscal policies designed to reduce the unemployment rate will be
a. ineffective in the long run. b. ineffective in the short run. c. noninflationary. d. all of the above.
Banks can hold deposits at the Federal Reserve. Balances in these accounts can be used by banks to meet their reserve requirements, but the Fed pays no interest on these deposits
a. True b. False Indicate whether the statement is true or false