The stagflation in the United States during the 1974-1975 period can be attributed to
a. increases in real GDP due to high levels of defense spending.
b. tight monetary and fiscal policies of the Nixon-Ford administrations.
c. rapid increases in petroleum prices, poor harvests, and the removal of wage and price controls.
d. budget deficits by the federal government and increasing trade deficits by the United States.
c
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Computer memory chips are produced on wafers, each wafer having many separate chips that are separated and sold. The above table shows costs for a perfectly competitive producer of computer memory chips
If the market price of a wafer is $2,400 dollars, how many wafers will the firm produce? A) 0 B) 4 or 5 C) 3 or 4 D) 1 or 2 E) 6
Price wars can be the result of
A) a cooperative equilibrium. B) a firm playing a tit-for-tat strategy in which last period the competitors complied with a collusive agreement. C) new firms entering the industry and immediately agreeing to abide by a collusive agreement. D) new firms entering an industry and all firms then finding themselves in a prisoners' dilemma.