Given that the value of individual production of Carol and Tessie is zero, while their combined production is positive, we may conclude that:
a. any subset of the grand coalition can credibly threaten to block the coalition.
b. the coalition is not individually rational.
c. the core is empty.
d. any allocation of payoffs from the coalition will lie within the core.
D
Economics
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One criticism of the new classical model is that it does not have an adequate explanation for
a. rising prices and output. b. short-run effects of monetary policy on output. c. how optimizing individuals form their expectations. d. the Great Depression. e. both c and d.
Economics
Starting from a pure exchange equilibrium, an increase in the demand for a commodity will result in:
a. a fall in the market price. b. a rise in the market price. c. a rise in the equilibrium output. d. a fall in the equilibrium output.
Economics