To determine the real interest rate in the data, one should take the interest rate on government debt
A) and leave it at that.
B) and add the inflation rate.
C) and subtract the inflation rate.
D) and divide by the inflation rate.
C
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The capture theory of regulation is that regulations
A) help producers to maximize economic profits. B) mean producers suffer losses. C) result in diseconomies of scale. D) benefit society, not producers. E) benefit the regulators, not the producers or the consumers.
Game theory pricing behavior may be best described as the decision by a firm to
a. accommodate the competition by cutting price when they cut and increasing price when they do so that the firm is not caught in a situation where it prices low while itscompetitors price high b. disregard competitors when formulating price since it cannot control the behavior of its competitors c. price its good in order to maximize profit, assuming the firm anticipates correctly (that's a big assumption) how its competitors will respond d. lower the price until there is no profit left in order to drive its competitors out of the market, then raise price to its former level e. collaborate with competitors prior to making pricing decisions to avoid unnecessary competition