The small town of Narberth has two pizza stores. Which of the following statements are CORRECT?

I. The profits of each store depend on the price of the pizza at the other store.
II. Both stores would increase their profit if they cooperated in setting their prices.
A) I only
B) II only
C) Both I and II
D) Neither I nor II

C

Economics

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a. True b. False Indicate whether the statement is true or false

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Economists use models in order to

a. experiment with alternative circumstances. b. make educated guesses about real life events. c. predict outcomes under various hypothetical conditions. d. increase understanding of how a relationship actually works. e. All of the above are correct.

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