Suppose a lazy monopolist's fixed costs are lower than the fixed costs of an efficient monopolist. In all other respects, the monopolists are the same. Which of the following statements about this monopolist is true?
A. It charges a higher price than the monopolist producing efficiently.
B. It charges a lower price than the monopolist producing efficiently.
C. It produces less than the monopolist producing efficiently.
D. Its total revenue is the same as the monopolist producing efficiently.
Answer: D
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Discuss the effects of a rise in the dollar interest rate on the exchange rate
What will be an ideal response?
Based on the Saving-Investment Diagram, if the world real interest rate declines from A to C, then the change in net exports is measured by the difference between values ________
A) G and E B) H and G plus E and D C) H and G minus E and D D) G and F plus F and E E) none of the above
When the economy enters a recession, automatic stabilizers create:
a. higher taxes. b. more discretionary spending. c. budget deficits. d. budget surpluses.
Management and a labor union are bargaining over how much of a $50 surplus to give to the union. The $50 is divisible up to one cent. The players have one shot to reach an agreement. Management has the ability to announce what it wants first, and then the labor union can accept or reject the offer. Both players get zero if the total amounts asked for exceed $50. Which of the following is true?
A. ($25, $25) is a Nash equilibrium. B. There are multiple Nash equilibria. C. There are multiple Nash equilibria, and ($25, $25) is a Nash equilibrium. D. A Nash equilibrium is also a perfect equilibrium.