Firms 1 and 2 compete in a Cournot duopoly. If firm 1 adopts a strategy that raises firm 2's marginal cost:
A. firm 1 will increase market share.
B. firm 2 will increase its output.
C. firm 1 will suffer lower profits.
D. All of the statements associated with this question are correct.
Answer: A
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Given that most investors tend to be risk averse,
A) no one buys risky assets. B) there's a trade-off between risk and return. C) low risk assets provide the best return. D) it must be a superior strategy compared to one that is risk loving.
For which situation would we expect the adjustment speed to be the fastest?
A) The demand for surgeons increases. B) A large increase in birth rates leads to an increase in elementary school teachers. C) The demand for movie videos increases. D) The demand for office space in downtown Chicago increases.
Which of the following is an example of an inverse relationship?
A. amount of snowfall and profits of ski resorts B. the number of hours working while not studying for a test and test grade C. hours of study and test grade D. calories eliminated from diet and weight loss
The price of a loaf of bread is $1.50, the price of a gallon of milk is $3.00, and the price of a pound of butter is $2.40. The price of a loaf of bread relative to a gallon of milk is ________, while the price of a gallon of milk relative to a pound of butter is ________.
A. 2.0; 0.8. B. 0.5; 1.25. C. 0.5; 0.8. D. 2.0; 1.25.