The above figure shows the payoff to two firms in an industry deciding to make an investment in worker safety. Neither firm will make the investment because
A) each can benefit from the other firm incurring the costs.
B) there is no benefit to making the investment.
C) each firm pays for the other firm's investment.
D) society does not care about worker safety.
A
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All of the following are ways by which existing firms can deter the entry of new firms into an industry except
A) continuously producing new and improved products. B) advertising products aggressively. C) threatening to raise prices. D) earning less than maximum profit.
If the U.S. dollar increases in value relative to other currencies, how does this affect the aggregate demand curve?
A) This will shift the aggregate demand curve to the right. B) This will move the economy down along a stationary aggregate demand curve. C) This will move the economy up along a stationary aggregate demand curve. D) This will shift the aggregate demand curve to the left.