Central planners in command economies
a. generally set production targets for firms.
b. always consult consumers on the output of goods they want to consume.
c. allow prices to organize the economy's production.
d. depend upon the invisible hand to coordinate economic activities.
a
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Assume that the economy grows by 3 percent, total factor productivity grows by 2 percent, and the labor force grows at 2 percent. If labor contributes 40 percent to real GDP, then the stock of capital must have risen by 0.33 percent
a. True b. False Indicate whether the statement is true or false
Refer to the normal-form game of price competition shown below. 
Firm B is the incumbent facing potential entry from its rival, firm A. Firm A's strategies consist of {entry, stay out}. Firm B's strategies are then {hard if entry; hard if stay out; soft if entry; soft if stay out}. Find the non-subgame Nash equilibrium to this game, if one exists.
A. There is no non-subgame Nash equilibrium to this game. B. Firm A plays {entry}; firm B plays {soft if entry}. C. Firm A plays {stay out}; firm B plays {hard if entry}. D. Firm A plays {entry}; firm B plays {hard if entry}.