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Question 1
4 out of 4 points
Question 2
4 out of 4 points
The Prisoners Dilemma involves two spies who are held in separate soundproof
rooms. But even if the two spies could communicate, what makes it difficult for them to
achieve the cooperative solution (both not confessing)?
Answer
Selected
Answer:
The problem is that both spies have incentives to double cross each
other.
Correct Answer:
The problem is that both spies have incentives to double cross each
other.
Question 3
4 out of 4 points
Question 4
4 out of 4 points
Question 5
4 out of 4 points
If one-time gains from defection are always less than the discounted present value of an
infinite time stream of cooperative payoffs at some given discount rate, the decision-
Question 6
4 out of 4 points
Firms that have a cover charge for their customers and charge for each item they
purchase as well are exhibiting
Answer
Selected Answer:
Question 7
4 out of 4 points
Correct
Answer:
the seller can separate markets by geography, income, age, etc., and charge
different prices to these different groups.
the seller can separate markets by geography, income, age, etc., and charge
different prices to these different groups.
Question 8
4 out of 4 points
Which of the following pricing policies best identifies when a product should be
expanded, maintained, or discontinued?
Answer
Selected Answer:
marginal-pricing policy
Correct Answer:
marginal-pricing policy
Question 9
4 out of 4 points
The segmenting of customers into several small groups such as household, institutional,
commercial, and industrial users, and establishing a different rate schedule for each
group is known as:
Answer
Selected Answer:
Correct Answer:
Question 10
4 out of 4 points
Correct
Answer:
Question 11
4 out of 4 points
Which of the following are not approaches to resolving the principal-agent problem?
Answer
Selected Answer:
Question 12
4 out of 4 points
Question 13
4 out of 4 points
When borrowers who do not intend to repay are able to hide their bad credit histories, a
lender's well-intentioned borrowers should
Answer
Selected Answer:
Question 14
4 out of 4 points
Selected Answer:
Question 15
4 out of 4 points
Question 16
4 out of 4 points
The ____ is equal to the some of the squares of the market shares of all the firms in an
industry.
Answer
Selected Answer:
Herfindahl-Hirschman index
Correct Answer:
Herfindahl-Hirschman index
Question 17
0 out of 4 points
The sentiment for increased deregulation in the late 1970's and early 1980's has been felt
most significantly in the price regulation of
Answer
Selected Answer:
automobiles
Correct Answer:
transportation
Question 18
4 out of 4 points
The lower the barriers to entry and exit, the more nearly a market structure fits the ____
market model.
Answer
Selected Answer:
perfectly contestable
Correct Answer:
perfectly contestable
Question 19
4 out of 4 points
____ yields the same results as the theory of perfect competition, but requires
substantially fewer assumptions than the perfectly competitive model.
Answer
Selected Answer:
Question 20
4 out of 4 points
The antitrust laws regulate all of the following business decisions except ____.
Answer
Selected Answer:
wage levels
Correct Answer:
wage levels
Question 21
4 out of 4 points
Correct
Answer:
Question 22
4 out of 4 points
Question 23
4 out of 4 points
In the constant-growth dividend valuation model, the required rate of return on common
stock (i.e., cost of equity capital) can be shown to be equal to the sum of the dividend
yield plus the ____.
Answer
Selected Answer:
Correct Answer:
Question 24
4 out of 4 points
The ____ method assumes that the cash flows over the life of the project are reinvested
at the ____.
Answer
Selected Answer:
Question 25
4 out of 4 points
pecuniary benefits
Correct Answer:
pecuniary benefits
Tuesday, December 9, 2014 7:25:41 PM EST