Which of the following will increase macroeconomic equilibrium real gross domestic product?
A. a decrease in government spending
B. an increase in input prices
C. an increase in productivity
D. an increase in taxes
Answer: C
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If two firms in an oligopoly produce undifferentiated products and face identical constant marginal costs, then, absent any implicit or explicit collusion, they will price at marginal cost regardless of whether they move sequentially or simultaneously -- assuming price is the strategic variable.
Answer the following statement true (T) or false (F)
In return for their services in the primary securities market, investment banks earn a fee called a(n)
A) underwriting spread. B) bid-asked spread. C) dealer's spread. D) broker's spread.
Refer to Scenario 5.8. Given that the two outcomes are equally likely, Icarus Airlines' expected profit under complete information would be
A) $40 million. B) $90 million. C) $115 million. D) $120 million. E) $125 million.
An increase in the price of oil causes
a. a decrease in the demand for substitute goods. b. an increase in the price of substitute goods. c. an increase in the demand for complementary goods. d. an increase in the price of complementary goods.