Developing countries do:
A. compete with one another for foreign investment, and this competition reduces the benefits from foreign investment.
B. not compete with one another for foreign investment, because they have sufficient domestic saving to finance their investment needs.
C. not compete with one another for foreign investment, because they lack the infrastructure to attract it in the first place.
D. compete with one another for foreign investment, but this competition is beneficial to developing countries because it insures a more efficient allocation of resources.
Answer: A
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A tit-for-tat strategy can be used in
A) a single-play game or a repeated game. B) a single-play game but not a repeated game. C) a repeated game but not a single-play game. D) neither a repeated game nor a single-play game.
When a natural monopoly exists in an industry, which statement will be true?
a. The per-unit costs of production will be lowest when there are numerous producers in the industry. b. The per-unit costs of production will be lower for the smaller firms than for the larger firms. c. The per-unit costs of production will be minimized at the output that maximizes the industry's profitability. d. The per-unit costs of production will be lowest when a single firm generates the entire output of the industry.