The theory that firms will be slow to change their products' prices in response to changes in demand because there are costs to changing prices is called
A) transactions cost theory.
B) cost—benefit theory.
C) menu cost theory.
D) gift exchange theory.
C
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Andre Agassi, a star tennis player, is playing the number one player in the world, Roger Federer
Before the match, Agassi decided that he would serve 20 percent of his serves to Federer's backhand, 30 percent of his serves to Federer's forehand, and 50 percent of his serves straight at Federer. In the language of game theory, this is known as: A) a pure strategy. B) a dominant strategy. C) a mixed strategy. D) a maximin strategy.
The CPI's approach is to
a. track the cost of the CPI market basket, which is the collection of goods and services that the typical consumer buys. b. track the cost of the CPI market basket, which is the collection of every good and service that is for sale in the U.S. c. track the cost of housing, and food and beverage expenditures. d. track the cost of the CPI market basket, which is the collection of every good that is for sale in the U.S. e. track the cost of the CPI market basket, which is the collection of goods that the typical consumer buys.
Laqueta buys a new GPS device for her car for $135 . She receives consumer surplus of $25 on her purchase if her willingness to pay is
a. $25. b. $110. c. $135. d. $160.
Twenty-four years before CUSTA, another agreement between the same countries covered trade in
A) textiles. B) steel. C) autos. D) agriculture.