The effects of a quota include:
A) decreasing consumers' surplus.
B) increasing total revenue for the importers who sell the allowed number of imported units.
C) increasing producers' surplus.
D) b and c
E) a, b, and c
E
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What is meant by the expected rate of return?
What will be an ideal response?
P-TV and QRS-TV are trying to decide whether to air a sitcom or a reality show in a given time slot. Viewers like both sitcoms and reality shows, but sitcoms are more expensive to produce than reality shows since real actors need to be hired. QRS-TV makes its decision first, and then P-TV observes that choice before making its decision. Both stations know all of the information in the decision tree below. 
In the equilibrium of this game:
A. both stations will air sitcoms. B. QRS-TV will air a reality show and P-TV will air a sitcom. C. both stations will air reality shows. D. QRS-TV will air a sitcom and P-TV will air a reality show.