13. (04.05 MC) Patricia owns a cleaning business with Sarah. They both have other jobs and are trying to determine the number of hours to work at the cleaning business. The following payoff matrix shows their daily incomes depending on the number of hours they work at the cleaning business. Sarah Full time Part time Patricia Full time $60, $60 $50, $80 Part time $80, $50 $55, $55 Which of the following accurately describes the payoff matrix above? (2 points) Neither Patricia nor Sarah have a dominant strategy. Patricia has a dominant strategy to work full-time, and Sarah has no dominant strategy. O Sarah has a dominant strategy to work full-time, and Patricia has no dominant strategy. Patricia and Sarah both have a dominant strategy to work full time. Patricia and Sarah both have a dominant strategy to work part time.14. (04.05 HC) Company A and Company B are each telecommunications manufacturers. Both companies manufacture the same products, and they make their decisions based on the other's actions. Both companies are considering opening retail outlets to increase their profits. The payoff matrix shows the profits of the companies in millions of dollars if they choose to open retail outlets. Company B Retail outlets No retail outlets Company A Retail outlets $25, $25 $30, $15 No retail outlets $35, $35 $34, $20 The government imposes a new $5 million tax to open retail outlets. What is the expected outcome of the new payoff matrix, given the tax? (2 points) The Nash equilibrium is for Company A to not open retail outlets and for Company B to open retail outlets. The Nash equilibrium is for Company A to open retail outlets and for Company B to not open retail outlets. The Nash equilibrium is for both Company A and Company B to open retail outlets. The Nash equilibrium is for both Company A and Company B to not open retail outlets. There is no Nash equilibrium after the change given in the scenario.15. (04.05 MC) Megan and Martha own competing hair salons that are in the same neighborhood. They are both considering offering their clients discounts in order to increase business. The payoff matrix shows their yearly incomes in thousands of dollars if they offer and do not offer discounts to their customers. Martha Discount No Discount Megan Discount $50, $75 $75, $60 No Discount $35, $90 $70, $85 If both Megan and Martha did not discount, what would each earn in yearly income? (2 points) Megan would earn $50,000; Martha would earn $75,000. Megan would earn $75,000; Martha would earn $60,000. Megan would earn $35,000; Martha would earn $90,000. Megan would earn $70,000; Martha would earn $85,000. Megan would earn $35,000; Martha would earn $85,000.E 00000 D 8.{04.U4 MC) Use the graph to answer the question that follows. (2 points} Quantity (units) In monopolistic competition, which of the following conditions (A through D} would cause the shift in demand from D2 to D1? Firms enter the market; competitors increase advertising. Firms enter the market; differentiation in similar products decreases. Firms exit the market; competitors increase advertising. Firms exit the market; differentiation in similar products decreases. Competitors increase advertising; differentiation in similar products decreases. 4. (04.02 MC) Use the graph to answer the question that follows. (2 points) Price MC HY AC M N AR G MR Q1 Quantity (units) What would be the area of this firm's total revenue? P3, G, Q2, and 0 O P2, N, Q2, 0 P1, M, Q2, 0 P1, M, N, P2 O P1, M, G, P3m D 6404.03 MC) Mm\" he graph below represents the demand graph of a monopolist. (2 points) ::: /////, 5:2 '2 5 no as 35 u 32 ID 20 30 40 50 93 70 80 90 [DO (murky The firm uses price discrimination to increase its prots what is the change in the price level? Assume the firm is acting to maximize profits before and after price discrimination. O From $3 to $14 0 From $14 to $9 0 From $14 to $12 0 From $8 to demand level at every output quantity 0 From $14 to demand level at every output quantity