answer all of the questions and FRQ they can be simple and don't have to write a lot make sure to number the answers

the refnecis Ap microecomocims unit 4

there is no other information just answer the questions

Question 1 Assume that a monopolistically competitive firm is currently maximizing profit with an output of 100 units and a price of $50. Which of the following is true? A Total revenue is maximized when the firm produces 100 units of output. B Marginal revenue equals $50 when the firm produces 100 units of output. C Marginal cost is greater than marginal revenue when the firm produces 150 units of output. D Marginal cost is minimized when the firm produces 100 units of output. E Average total cost is minimized when the firm produces 100 units of output.Question 2 Breadbasket and Quicklunch are the only two sandwich shops serving a small town. Each Respond to all parts of the question. shop can choose to set a high price or a low price for sandwiches. The payoff matrix below shows the daily profits for each combination of prices that the two shops could choose. The BIYEO first entry shows Breadbasket's profits, and the second entry shows Quicklunch's profits. Assuming that both shops know the information shown in the matrix, answer the following. Quicklunch High Price Low Price 0 / 10000 Word Limit High Price $105, $110 $40, $130 Breadbasket Low Price $120, $80 $75, $70 a. Does each shop have a dominant strategy to set a high price, a dominant strategy to set a low price, or does it have no dominant strategy? i. Breadbasket ii. Quicklunch b. If the two shops do not cooperate on setting prices, what will be the profit for eachHigh Price $105, $110 $40, $130 Breadbasket Low Price $120, $80 $75, $70 a. Does each shop have a dominant strategy to set a high price, a dominant strategy to set a low price, or does it have no dominant strategy? i. Breadbasket ii. Quicklunch b. If the two shops do not cooperate on setting prices, what will be the profit for each shop? i. Breadbasket ii. Quicklunch c. The town government is concerned that food prices are too high. It decides to give a daily subsidy of $20 to any shop that chooses to set a low price for its food items. Redraw the payoff matrix under the government subsidy system. Using your redrawn payoff matrix, answer each of the following. i. Would Quicklunch choose to set a high price or a low price? Explain using specific values from your redrawn matrix. ii. Would the profits for Breadbasket increase, decrease, or stay the same? Explain with a comparison to your answer in part (b)(i). Use the specific values.Question 3 Which of the following is more likely to occur when there are high barriers to entry in an industry? A The firm(s) in the industry earn economic profits in the long run. B The industry will be characterized by diseconomies of scale. C The firm(s) in the industry are price takers. D The firm(s) in the industry will charge a price equal to average total cost. E The firm(s) will charge a price on the inelastic portion of the demand curve.Question 4 Which of the following best describes firms in an industry if all the firms are in a cartel? A They produce the allocationy efficient quantity. B They face a perfectly elastic demand curve. C They have identical cost curves. D They coordinate their production decisions. E They agree to remove barriers to entry.Question 5 Which ofthe following is true for a pricediscriminating rm? The firm charges different prices to different consumers for the same product. 6 The firm charges different prices for different products. The firm pays more per unit of laborthan it pays per unit of capital. The firm pays more per unit of capital than it pays per unit of labor. The firm sells different quantities to its consumers but charges each of them the same price Question 6 Suppose that the two biggest producers of gold, Bmine and Gmine, form a cartel to set price. However, each has the option to cheat or to not cheat on the agreement. The table below shows the payoffs from these strategies, with the first entry in each cell representing the payoff to Bmine and the second representing the payoff to Gmine. Gmine Cheat Not Cheat Cheat $10, $5 $25, $20 Bmine Not Cheat $5, $15 $20, $25 Which of the following correctly describes the dominant strategy of each firm? A Neither Gmine nor Bmine has a dominant strategy. B Gmine's dominant strategy is to not cheat; Bmine does not have a dominant strategy. C Gmine's dominant strategy is to cheat; Bmine does not have a dominant strategy.Gmine Cheat Not Cheat Cheat $10, $5 $25, $20 Bmine Not Cheat $5, $15 $20, $25 Which of the following correctly describes the dominant strategy of each firm? A Neither Gmine nor Bmine has a dominant strategy. B Gmine's dominant strategy is to not cheat; Bmine does not have a dominant strategy. C Gmine's dominant strategy is to cheat; Bmine does not have a dominant strategy. D Gmine's dominant strategy is to cheat; Bmine's dominant strategy is to not cheat. E Gmine's dominant strategy is to not cheat; Bmine's dominant strategy is to cheat.Question 7 An industry consists of 100 small firms, and the largest firm accounts for only 2 percent of sales. Brand names are considered a signal of quality. The industry described is best classified as A monopoly B perfectly competitive C monopolistically competitive D oligopolistic E monopsonisticQuestion 8 Compared with a perfectly competitive market.a single-price monopoly with the same market demand and cost curves will increase output and price 6 increase output and decrease price decrease output and price decrease output and increase price produce the same level of output and increase price Question 9 Which ofthe following can give a rm market power? Having access to common information Q Producing a standardized or homogeneous product Lacking barriers to entry or exit Having a large number of competitors in the market Having economies of scale in production over the range of market output Question 10 When two firms interact in an oligopollstic market. which ofthe following statements is true? If one rm has a dominant strategy then the other rm does not have a dominant strategy. 6 If one rm has a dominant strategy then the other rm also has a dominant strategy. Both firms must have dominant strategies. If one rm has a dominant strategy then there is no Nash equilibrium. If both rms have dominant strategies. then there is a Nash equilibrium. Question 11 The price of an airline ticket is typically lower if a traveler buys the ticket several weeks before the flight's departure date rather than on the day of departure. This pricing strategy is based on the assumption that A travelers are not aware of how airline prices change across time B travelers do not have alternative modes of transportation C travelers will pay any price to travel as the departure date approaches D the marginal cost of the last few seats on an airplane is higher than that for the first few seats E travelers' demand becomes less elastic as the departure date approachesQuestion 12 A monopolistically competitive firm advertises in order to A shift the demand curve for its product to the left. B make the demand for its product less price elastic C make its product more similar to its competitors' D increase its positive externalities E reduce the industry's barriers to entryQuestion 13 a. Draw a correctly labeled graph showing a typical monopoly that is maximizing profit Respond to all parts of the question. and indicate each of the following. BIYEEO i. Price ii. Quantity of output iii. Profit b. Describe and explain the relationship between the monopolist's demand curve and 0 / 10000 Word Limit marginal revenue curve. c. Label each of the following on your graph in part (a). i. Consumer surplus ii. Deadweight lossQuestion 14 Include correctly labeled diagrams, if useful or required, in explaining your answers. A Respond to all parts of the question. correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to "Calculate," you must show how you BIYEEO arrived at your final answer. (a) Draw a correctly labeled graph for a single-price monopoly and show the profit-maximizing quantity, labeled Q1- (b) Assume the monopoly now engages in perfect price discrimination. On your graph in part 0 / 10000 Word Limit (a), show the profit-maximizing quantity for the price-discriminating monopoly, labeled Q2. (c) Based on your answer in part (b), what will happen to the consumer surplus? Explain. (d) Is the output produced by the perfectly price-discriminating monopolist allocation efficient? Explain.Question 15 Assume that Alpha and Beta are the only sellers of a product and they do not cooperate. Each rm has to decide whether to raise the product price. The payoff matrix below gives the profits, in dollars. associated with each pair of pricing strategies. The rst entry in each cell shows the profits to Alpha, and the second, the profits to Beta. Bela Do Not Raise Price Raise Price Raise .3 Price 5100. $100 $30, $120 - 1: Do Not Raise $1 1|), $20 $50, $70 Price Assuming both firms know the information in the matrix, which of the following correctly describes the dominant strategy of each firm? Alpha Beta Q9 Do not raise price Do not raise price Alpha Beta Do not raise price Raise price a Alpha Do not raise price Alpha Do not raise price Alpha Raise price Alpha Raise price Alpha No dominant Strategy Assuming both firms know the information in the matrix, which of the following correctly describes the dominant strategy of each rm? Beta Do not raise price Beta Raise price Beta No dominant strategy Bet: Do not raise price Beta Raise price Question 16 If the only two firms in an industry successfully collude to maximize their joint profit, the price for the product will be A equal to the marginal cost of production B equal to the average total cost of production C above the marginal cost of production D above the monopoly price E below the average variable cost of productionQuestion 17 The question refers to the following dlagram of a natural mac-pallet. Average Total Cost Marginal ('mt Marginal Revenue The firm shown in the diagram above qualies as a natural monopolyr because the demand curve is downward sloping the demand curve lies above the marginal revenue curve Pl Average P2 ,,,,,,, Total Cost PI Marginal ('mt Mnrginal Revenue The firm shown in the diagram above qualies as a natural monopolyr because the demand curve is downward sloping O the demand curve lies above the marginal revenue curve the average total cost is decreasing in the relevant range of market demand the rm can maximize prot with anyr output level it chooses marginal revenue is positive at the protmaximizing output level Question 18 If the three largest widget producers control 85 percent of the total widget market. then these producers are operating in an oligopoly Q monopolistic competition perfect competition a monopoly a cartel Question 19 A cartel is difcult to maintain for which ofthe following reasons? Consumers substitute away from the good when the price increases. 6 Individual cartel members are tempted to cheat on the agreement. Although the total gain to cartel members is positive. all members lose when everyone sticks to the agreement. Some firms will reduce output in an effort to lower costs of production. Oligopolistic behavior is generally predictable. Question 20 In monopolistic competition. a goal of advertising is to 6 reduce a rm's short-run average total cost minimize a firm's long-run average total cost make a rm's demand curve more elastic make a rm's demand curve less elastic shift a firm's demand curve to the left Question 21 Cost Price, A MC B Po C E F #+ MR D 0 Q, Q, Quantity Assume that the market is a profit-maximizing monopoly. Which of the following areas shows the consumer surplus? A AP QE B AP BP 1 B P E F \\+MR 0 Q Q2 Quantity Assume that the market is a profit-maximizing monopoly. Which of the following areas shows the consumer surplus? A APOE B AP,B C AFE D BJE E POFEQuestion 23 Which of the following is a source of monopoly power? A Scarcity B Elasticity of demand C Barriers to entry D Low profits E Free marketsQuestion 22 A monopolisticallv competitive profit-maximizing rm is currently producing and selling 2,000 units of output. At this output level, marginal revenue Is $9. average revenue is $10, and the average variable cost is $8. The product price is 09 6 @@ $8 $9 $10 greater than $10 lessthan $8