A dominant strategy is
A) an equilibrium where each firm chooses the best strategy, given the strategies of other firms.
B) a strategy chosen by two firms that decide to charge the same price or otherwise not to compete.
C) a strategy that is obviously the best for each firm that is a party to a business decision.
D) a strategy that is the best for a firm no matter what strategies other firms use.
Answer: D
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Which of the following statements is TRUE?
A) Average fixed cost equals average total cost plus average variable cost. B) Average variable cost is always greater than average fixed cost. C) Average fixed cost equals total fixed cost divided by total output. D) Average total cost always falls as output increases.
For a given inflation rate, if increasing threats to domestic security cause the government to increase military spending, then the ________ shifts ________.
A. short-run aggregate supply line; upward B. short-run aggregate supply line; downward C. aggregate demand curve; right D. aggregate demand curve; left
In the short run, the monopolistically competitive firm will experience:
A. economic profits or losses, but in the long run only an economic profit. B. economic profits or losses, but in the long run only a normal profit. C. a normal profit, but in the long run only an economic profit. D. an economic profit, and also one in the long run.
Who said "Work expands so as to fill the time available for its completion," and "Work expands to occupy people available for its completion"?
A. Adam Smith B. C. Northcote Parkinson C. Karl Marx D. John Maynard Keynes