The cost-plus-markup theory of price setting
A) explains why firms can't raise their prices until their costs rise.
B) explains why percentage markups vary.
C) is consistent with what many sellers say about how they set their prices.
D) takes demand into account in explaining relative prices.
C
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Consider the following game in which two firms decide how much of a homogeneous good to produce
The annual profit payoffs for each firm are stated in the cell of the game matrix, and Firm A's payoffs appear first in the payoff pairs: Firm B - low output Firm B - high output Firm A - low output 300, 250 200, 100 Firm A - high output 200, 75 75, 50 What are the dominant strategies in this game? A) Both firms produce low levels of output B) Both firms produce high levels of output C) Firm A's dominant strategy is to produce low levels of output, but Firm B does not have a dominant strategy. D) Firm B's dominant strategy is to produce low levels of output, but Firm A does not have a dominant strategy. E) Neither firm has a dominant strategy
Those who believe that overall economic growth is more important than the distribution of income would say that:
A. if the society is not getting richer, then things can never become more equal. B. it is fundamentally unjust for some people to have so much when others have so little. C. if everyone is getting richer, the relative speed of these gains isn't as important. D. All of these are true.
The most contentious part of the patient protection and affordable care act has been its
Decisions to buy or sell securities at the Fed are made by the:
A. Congress. B. Federal Open Market Committee. C. Federal Deposit Insurance Corporation. D. President's Council of Economic Advisors.