In a situation where both firms in a two-firm, balanced oligopoly choose to avoid the worst case scenario
a. both firms will end up in the worst case
b. both firms end up in a Nash equilibrium outcome
c. only one firm will survive
d. both firms end up charging different prices
e. both firms end up with different profit margins
B
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A minimum wage
A) increases all workers' surplus because the wage rate increases. B) increases consumer surplus because the price of the good decreases. C) decreases the firms' surplus because fewer workers are hired at the higher wage. D) increases the firms' surplus and the workers' surplus because it increases the efficiency of the labor market. E) None of the above answers is correct.
Suppose on any given day there is an excess demand of reserves in the federal funds market
If the Federal Reserve wishes to keep the federal funds rate at its current level, then the appropriate action for the Federal Reserve to take is a ________ open market ________, everything else held constant. A) defensive; sale B) defensive; purchase C) dynamic; sale D) dynamic; purchase