21. If a monopolist's marginal cost is more than the marginal revenue, it will: (a) raise price and raise output. (b) lower price and raise output. (c) raise price and lower output. (d) exit. (e) shut down. 22. Frank is considering moving to Brisbane. There is a 70 per cent chance that he will find a job that pays $2000 more than what he currently earns, and a 30 per cent chance he will find one that pays $3000 less. The expected value of moving to Brisbane is: (a) $400. (b) $200. (c) $500 (d) $500. (e) $2300 23. In which of the following circumstances would strategic behaviour not be relevant to decision-making? (a) A local petrol station owner wondering how his competition across the street will react to his decision to lower prices. (b) Negotiating a salary when two firms have made offers. (c) Deciding whether to cheat on your partner. (d) Firm behaviour in a perfectly competitive industry. (e) Gambling while playing a card game called poker. 25. The tragedy of the commons' refers to the: (a) overuse of resources that have no price. (b) plight of the common man. (c) under production of external benefits. (d) overuse of resources that have no cost. (e) historical development of economics