Consider a market with two firms, Krispy Kreme Doughnuts (KK) and Dunkin' Donuts (DD), that produce donuts. Both firms must choose whether to charge a high price ($1.25) or a low price ($0.85) for their donuts. These price strategies with corresponding profits are illustrated in the payoff matrix to the right. Krispy Kreme's profits are in red and Dunkin' Donuts' are in blue. Krispy Kreme's dominant strategy is to pick a price of $1.25 , and Dunkin' Donuts' dominant strategy is to pick a price of $0.85 . What is the Nash equilibrium for this game? A. Krispy Kreme will choose a price of $1.25 and Dunkin' Donuts will choose a price of $0.85. B. Krispy Kreme and Dunkin' Donuts will both choose a price of $1.25. C. Krispy Kreme will choose a price of $0.85 and Dunkin' Donuts will choose a price of $1.25. D. Krispy Kreme and Dunkin' Donuts will both choose a price of $0.85. E. The game has no Nash equilibrium.

If temper company, a manufacturer of mattresses, was considering moving its production facilities to china but decided against it because the additional costs of shipping the mattresses back to the u.s. would offset the cost savings associated with moving the production facilities, the increased costs associated with shipping would be an example ofanswers: learning-curve economies.diseconomies of scale.economies of scale.competitive advantages.

Suppose that kenji, an economist from an am talk radio program, and lucia, an economist from a school of industrial relations, are arguing over health insurance. the following dialogue shows an excerpt from their debate: lucia: a popular topic for debate among politicians as well as economists is the idea of providing government assistance for health benefits. kenji: i think it is oppressive for the government to tax people who take care of themselves in order to pay for health insurance for those who are obese. lucia: i disagree. i think government funding of health insurance is useful to ensure basic fairness. the disagreement between these economists is most likely due to . despite their differences, with which proposition are two economists chosen at random most likely to agree? lawyers make up an excessive percentage of elected officials. minimum wage laws do more to harm low-skilled workers than them. tariffs and import quotas generally reduce economic welfare.

Financial information that is capable of making a difference in a decision is