Oscar and Felix are the only firms that clean offices in a large city. They agree to operate as a cartel. The payoff matrix above shows the economic profit that each firm can make. If the game is played only once, then ________
A) Felix and Oscar will each make $10 million economic profit
B) Felix will comply and Oscar will make $12 million economic profit
C) Felix and Oscar will each make $1 million economic profit
D) Felix will cheat and Oscar will make -$2 million economic profit
C
Economics
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The demand for a good is more elastic if the
A) good is a necessity. B) good has few substitutes. C) good is narrowly defined. D) supply of the good is plentiful. E) Both answers B and C are correct.
Economics
The figure above shows Diane's demand curve for soda. The price of a soda is $1.00. Diane's consumer surplus from her 15th soda is
A) $0.00. B) $0.50. C) $1.00. D) $1.50. E) $2.50.
Economics