Refer to the payoff matrix below. If Healthy Snacks is known for consistently bringing new products to the market and this is the focal point, what is the equilibrium of the game using the focal point criterion?
Healthy Snacks and Best Treats are two firms competing in the health food snacks market. Both are considering introducing a new health food snack made purely of dried power fruits. The payoff matrix shows their net economic profit in millions for the different strategies.
A) Best Treats Introduce and Healthy Snacks Introduce.
B) Best Treats Do Not Introduce and Healthy Snacks Do Not Introduce.
C) Best Treats Do Not Introduce and Healthy Snacks Introduce.
D) Best Treats Introduce and Healthy Snacks Do Not Introduce.
C) Best Treats Do Not Introduce and Healthy Snacks Introduce.
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We observe that the price per ounce of milk in a quart container is higher than the price per ounce in a gallon container. What is the likely reason for this?
A. The higher costs of quart containers B. The higher costs of production of milk in smaller quantities. C. Higher transportation costs for smaller container sizes. D. The marginal utility of milk is higher in smaller containers than it is in larger containers.
When net exports are negative,
a. exports are greater than investment b. depreciation is greater than net investment c. imports are greater than investment d. exports are greater than imports e. imports are greater than exports
Suppose consumers save 5 percent of their incomes. If the government collects 100 dollars in taxes from each taxpayer, private saving will ________ per taxpayer.
A. increase by $105 B. decrease by $95 C. decrease by $5 D. decrease by 95 cents
Money in a fiduciary monetary system is backed by
A. the intrinsic value of the materials used to make the assets that serve as money. B. assets owned by the government that are intrinsically valuable. C. a commodity such as gold or silver. D. the public's confidence that the assets will continue to serve as money.