In a perfectly competitive market
A. if a firm raises its price, it will lose some, but not all, of its customers.
B. when a firm sells another unit of output, the addition to total revenue is equal to market price.
C. a firm faces a perfectly elastic demand because there is unrestricted entry and exit.
D. all of the above
E. none of the above
Answer: B
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A Monetarist-oriented econometric model is likely to emphasize that monetary policy affects economic activity
A) directly through changes in government spending. B) directly through changes in the money supply. C) indirectly through changes in velocity. D) indirectly through changes in money demand.
When the game does reach the Nash Equilibrium, the payoffs for both stores will be
a. Megastore $95 and Superstore $80 b. Megastore $305 and Superstore $55 c. Megastore $65 and Superstore $285 d. Megastore $165 and Superstore $115