6. Explain why, at a Cournot equilibrium with two firms, neither firm would have any regret about its output choice after it observes the output choice of its rival.

7. What are the conditions that enhance the likelihood of a cooperative outcome in a repeated prisoners' dilemma game?

8. Explain why an increase in the price of an input typically causes an increase in the long-run total cost of producing any particular level of output.

9. How will a change in income affect the location of the budget line?

10. Will a production quota in a competitive market always increase producer surplus?

11. In the long-run equilibrium in an increasing-cost industry, each firm earns zero economic profits. Yet there is a positive area between the long-run industry supply curve and the long-run equilibrium price. What does this area represent?