The aggregate demand curve of an economy:
a. is downward sloping.
b. first declines and then becomes positively sloped.
c. is horizontal

For a firm to be economically efficient from society's point of view, it should produce to the point at which

A) marginal cost equals marginal revenue. B) marginal cost equals average total cost. C) marginal cost equals price. D) average total cost equals price.

The chain store paradox of an incumbent who accommodates a finite stream of potential entrants threatening to enter sequentially numerous markets illustrates

a. backwards induction b. the unraveling problem c. subgame perfect equilibrium d. best reply responses e. all of the above