The solution of a game is dependent upon
a. predicted response of competitors
b. the existence of a perfectly inelastic demand curve
c. costs of production being constant
d. economies of scale in production
e. marginal revenue being equal to marginal cost
A
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To maximize profits, firms hire labor as long as
A) each additional hour hired produces more additional output than the real wage rate. B) the total hours hired produces more additional output than the real wage rate. C) each additional hour hired produces more additional output than the nominal wage rate. D) the quantity of labor supplied increases as the real wage rate increases. E) workers continue to supply labor to the firm.
Nonexcludability is a matter of degree. As the cost of excluding individuals rises, _____
a. the marginal cost of provision increase b. the marginal cost of provision decreases c. the probability of free riding declines d. the probability of free riding increases