A monopolistically competitive firm is producing an output level at which marginal revenue is greater than marginal cost. This firm should __________ quantity and __________ price to increase profit or reduce losses

Refer to the scenario above. Which of the following statements will be true in steady state?

A) Economy A will have a lower capital stock and a greater GDP than economy B. B) Economy A will have a greater capital stock and a lower GDP than economy B. C) Economy A will have a greater capital stock and GDP than economy B. D) Economy A will have a lower capital stock and GDP than economy B.

Two firms are introducing an improved version of their toothpastes. They must decide whether or not to advertise their products. The table above gives the payoff matrix in terms of the economic profits they expect in each case

The payoffs are in terms of millions of dollars. a. What is the Nash equilibrium for the game? b. If they could cooperate, what strategy would they prefer? What would be the payoff?