How does an increase in competition in an industry usually affect productivity?
What will be an ideal response?
Increase in competition in an industry changes work rules in a way that allows for a more flexible allocation of labor across tasks and better utilization of resources. This leads to a significant increase in productivity in the industry.
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Refer to Figure 10.1. This scenario is representative of a(n)
A) prisoner's dilemma game. B) battle of the sexes game. C) pure coordination game. D) assurance game.
When people decide whether or not to get a flu vaccination, they ignore the ________ and as a result ________
A) marginal private benefit; too few vaccinations are given B) external benefit; too few vaccinations are given C) private cost; too many vaccinations are given D) marginal external cost; vouchers must be provided E) social cost; too many vaccinations are given