1. Answer true or false and explain your answer in under 1 page: Perfect Competition is never preferred to a market with Cournot competitors.

2. Suppose a virus is rapidly spreading around the world.The most effective way to combat the virus is to inoculate as many people as possible with a particular vaccine.As such, suppose all governments agree to pay for all costs associated with getting everyone vaccinated. That is, anyone and everyone may get vaccinated at a zero price. Given just this information, is the vaccine a public good in this question? Explain in under page.

3. Choose the most accurate statement and explain why it is accurate. Also explain why you did not choose the other statements. Keep your answer under page.

The most accurate statement is .

a) Perfect Competition is the least efficient type of market structure.

b) Public goods benefit everyone because everyone wants them.

c) A Nash equilibrium only can occur when at least one player in a game has a dominant strategy.

d) Economic Surplus is accurately labeled since it refers to an abundance of a good or service.

e) The best solution to a negative externality is one which has the source completely internalize the negative externality.

4. Consider the following non-cooperative, simultaneous, 2-player game. Each player seeks a promotion. To get the promotion, each player has two possible strategies:earn it through hard work (Work) or make the other person look bad through unscrupulous means (Mean). The company is better off if they work together but has no way of ensuring that. The payoff matrix describing this game is shown below. The payoffs for each player are levels of utilitylarger numbers are preferred to smaller numbers. Player 1's payoffs are listed first in each box. The game is played simultaneously.

Find the Nash equilibrium (or Nash equilibria) and describe how you found it/them. Does either player have a dominant strategy? If so, what is it for each player? Is the company better off or not?