D Question 17 2.5 pts The table below shows the production function for a local, high-end pizza shop named Mario and Luigi. The left column shows the number of workers employed by this pizza shop, while the column on the right shows the associated number of slices of pizza produced per day. Labor Output 0 70 N 130 3 180 A 220 250 Suppose Mario and Luigi charges $5 per slice of pizza and it pays its workers a wage equal to $160 per day. How many workers should this pizza shop employ to maximize profit? 0 2 0 3 0 4 0 5Canvas G A D Question 15 2.5 pts Luther Corp is a competitive firm whose value-of-marginal-product curve is shown in the graph below. The horizontal axis shows the number of workers working there daily 400 - VMP. 360- 320 280 240 200 160 120 80 40 VMP If the marginal product of the fifth worker is 30 units of output per day, then the price of the firm's output is $4 O price of the firm's output is $6 O price of the firm's output is $8. O wage received by workers is $120 per day. Previous NextCanvas D Question 6 2.5 pts Now instead, lets consider what happens when AcmeGoods and PinnacleXLX produce solar cell solutions for tall buildings but these two firms engage in a single-stage game where they simultaneously decide whether to produce good-quality or poor-quality solar cells. Their payoffs, represented as annual profits, are found in the payoff matrix below. Acme's Decision Good Quality Poor Quality Acme's profit = $6 million Acme's profit = $5 million Good Quality Pinnacle's profit - $6 million Pinnacle's profit - $8 million Pinnacle's Decision Acme's profit = $8 million Acme's profit - $7 million Poor Quality Pinnacle's profit = $5 million Pinnacle's profit - $7 million If this game is played only once, the predicted outcome is both Acme and Pinnacle produce a poor-quality solar cells. Acme produces poor-quality solar cells while Pinnacle produces good-quality solar cells. Acme produces good-quality solar cells while Pinnacle produces poor-quality solar cells. O both firms produce good-quality solar cells. NextD Question 18 2.5 pts A disadvantage of using in-kind transfers to reduce poverty is that they O alter households' incentives, while a negative income tax does not alter households' incentives. O do not help poor households purchase the goods and services they value the most highly O can only be distributed by the federal government. O are non-excludable, so some rich households may benefit from them. Previous Next >Question 3 2.5 pts Suppose the market for rugged weather-resistant outdoor televisions is a monopoly dominated by Samsung. Samsung maximizes profit by producing 5,800 units. If the same market were a duopoly--as opposed to a monopoly--which of the following outcomes would be most likely if the duopolists were able to successfully collude? Each firm produces 5,800 units for an aggregate total of 11.600 units. Each firm produces 4.500 units. One firm produces 2,400 units while the other firm produces 1,600 units. O One firm produces 3,800 units while the other firm produces 2,000 units. Previous Next Not saved Submit Quiz3 Canvas CEXGE A D Question 9 2.5 pts Two large drug manufacturers-Firm A and Firm B-produce Ativan and Lorezepam, the same drug with two names that treats anxiety. A side effect of Ativan/Lorazepam is that it causes drowsiness and dry mouth but also severe heart issues, and as a result, the two manufacturers are being investigated jointly by the local state health agency and the district attorney's office. Each drug manufacturer possesses confidential data that suggest the more dangerous side effect was known by the two drug manufacturers prior to marketing this drug for sale. However, the state prosecutor and the health agency does not have access to these data. The state prosecutor therefore provides the two drug manufacturers with the opportunity to decrease the fine they would otherwise have to pay if they instead chose to cooperate with the investigation by releasing their confidential data. The table below captures the two drug manufacturers' profits in a simultaneous game where they each choose whether to cooperate with the state prosecutor or hide the confidential information. Firm B Cooperate Fight Firm A profit = $-60m Firm A profit = $-100m Cooperate Firm B profit = $-40m Firm B profit = $-12m Firm A Fight Firm A profit = $-12m Firm A profit = $-24m Firm B profit = $-100m Firm B profit = $-24m If each drug manufacturer follows its dominant strategy, Firm A's profit will be O $-12m O $-24m $-60m $-100mD Question 19 2.5 pts A government official proposes the following structure for a negative income tax. Each household's tax bill will be calculated as 30% of its income minus $10,000. Suppose a household does not earn any income. How would the proposed negative income tax affect this household? The household would receive an income subsidy of $1,000. The household would receive an income, subsidy of $3,000. The household would receive an income subsidy of $10,000. The household would not be impacted because a negative income tax requires a household to earn income. NextCanvas EX LA D Question 8 2.5 pts Entertainment720 is the only multimedia conglomerate in the small town of Pawnee making bags and other merchandise with the face of the local politicians printed on them. The demand curve they face is given below: Price Quantity $8 300 $7 400 DO 500 $5 500 $3 800 900 1,000500 $5 600 $4 700 $3 800 900 $1 1,000 Entertainment720 pays rent (fixed costs of $1,000) and has a constant marginal cost of $2 per unit. If it was able to perfectly price discriminate, how many units would it sell? 400 500 900 Previous Next Not saved Submit QuD Question 16 2.5 pts Consider the figure below, which captures the labor market for apple pickers. Supply Quantity of Labor ( of apple pickers) Suppose consumers are swayed by a viral marketing campaign that manages to sway people to start buying strawberry-rhubarb pies instead of the traditional apple pies, subsequently causing the price of apples to decline. Then, the equilibrium wage of apple pickers will increase, and more apple pickers will be hired. decrease, and more apple pickers will be hired. increase, and fewer apple pickers will be hired. decrease, and fewer apple pickers will be hired. Previous NextQuestion 11 2.5 pts In the last few months the Federal Reserve increased the interest rate by tightening monetary policy, and the demand for residential housing decreased as people bought fewer homes. The decrease in demand for houses increases the wage paid to carpenters and also increases the value of carpenters' marginal product of labor. increases the wage paid to carpenters but decreases the value of carpenters' marginal product of labor. () decreases the wage paid to carpenters but increases the value of carpenters' marginal product of labor. decreases the wage paid to carpenters and also decreases the value of carpenters' marginal product of labor. Next >A Very Good Building Co. is a competitive firm that does everything from home renovations to new constructions, where L is the number of workers employed by the firm and Q is the quantity of output produced per day as shown in the production function graph below. e 105 1001 90 40 5 Suppose the firm pays each worker a wage of $160, and that the price of the firm's output is $10 per unit. What is the value of the marginal product of labor for the third worker? 20 units of output $200 $220 $1600Canvas A D Question 5 2.5 pts AcmeGoods and PinnacleXIX produce solar cell solutions for tall buildings. These two firms engage in a repeated-play game where they simultaneously decide whether to produce good-quality or poor-quality solar cells in each stage. Their payoffs for each stage, represented as annual profits, are found in the payoff matrix below. Acme's Decision Good Quality Poor Quality Acme's profit = $6 million Acme's profit - $5 million Good Quality Pinnacle's Pinnacle's profit - $6 million Pinnacle's profit = $8 million Decision Acme's profit = $8 million Acme's profit = $7 million Poor Quality Pinnacle's profit = $5 million Pinnacle's profit = $7 million Suppose Acme and Pinnacle agree to maximize joint annual profits. If only Acme uses a tit-for-tat strategy in this repeated-play game, it will choose a good-quality solar cells in the first round, and in subsequent rounds, it will choose the quality chosen by Pinnacle in the previous round. poor-quality solar cells in the first round, and in subsequent rounds, it will choose the quality chosen by Pinnacle in the previous round. good-quality solar cells in all rounds. poor-quality solar cells in all rounds. Next . PreviousCanvas A D Question 7 2.5 pts Aaron Paul and Ed Helms decide to live together in a large ranch just outside of Chicago. One evening, a winter storm drops more than a foot of snow on their driveway leading from the street to their garage. As a result, the two friends need to decide who will shovel the snow clear otherwise neither of them will be able to make it to their respective movie premieres. Their options can be modeled in the following game, where the two famous actors can choose whether to shovel or not shovel the driveway. Their payoffs, reflecting their respective levels of happiness, are measured on a scale from very unhappy to very happy, where 10 is the happiest either can be. Aaron's Decision Shovel Don't shovel Aaron's happiness = 6 Aaron's happiness = 10 Shovel Ed's happiness = 6 Ed's happiness = 1 Fd's Decision Aaron's happiness - 4 Aaron's happiness - 2 Don't shovel Ed's happiness = T Ed's happiness = 3 If Aaron pursues his own self-interest, he will not shovel the driveway. D shovel the driveway only if Ed also shovels. O shovel the driveway only if Ed does not shovel the driveway O shovel the driveway. NextD Question 12 2.5 pts Fast Frank's Oil is a profit-maximizing firm in the competitive market for motor-vehicle oil changes. Fast Frank's Oil has a marginal cost of an oil change of $20. The marginal productivity of the last worker that Fast Frank's Oil hired is 2.5 oil changes per hour. What is the maximum hourly wage that Fast Frank's Oil is willing to pay the last worker it hires to perform oil changes? O $8 $50 O $20 $25 Next Previous Not saved Submit CD Question 13 2.5 pts Consider the labor market depicted in the figure below. Wage S W2 .D2 D O Quantity of Labor Which of the following would cause the labor demand curve to shift from D1 to D2?Question 10 2.5 pts Consider the following statements. Which of the following is true of oligopoly markets? O Oligopolists earn the highest profit when they cooperate and jointly behave like a monopolist O Collusion agreements are inherently stable and rarely cheated on. The few firms' profits are always lower with cartel arrangements than they are without cartel arrangements. Rational self-interest by profit-maximizing firms will cause collective profits to be maximized in the industry. Previous Next Not saved Submit QuizQuestion 4 2.5 pts Which of the following statements is true concerning a Nash equilibrium? An outcome in which each player is doing the best they can do given the strategies chosen by other players. O An outcome in which no player wishes to change his/her strategy given the strategies chosen by other players. O An outcome that occurs when all of the players in a game have a dominant strategy. O All of the answers are true. Previous Next him Not saved Submit QuizQuestion 2 2.5 pts The commercial bus transportation industry is an oligopoly dominated by carriers like Greyhound, Peter Pan and CoachUSA. Suppose barriers to entry fall in the commercial bus transportation industry, allowing additional firms to enter the market. What happens as the number of firms in this (formerly oligopolistic) industry increases? The quantity of output approaches the socially efficient quantity. Price approaches marginal cost. The price effect is diminished. All of the options are correctD Question 20 2.5 pts While mainstream economics does not often focus on the question of fairness, there are several diverse views on what constitutes "fairness". When considering economic fairness, libertarians maintain that one should focus on which of the following? The outcome of the system The process by which outcomes arise The maximin criterion The maximization of total social utility " Previous Next dutyD Question 13 2.5 pts Consider the labor market depicted in the figure below. Wage S W2 D2 D1 O Quantity of Labor Which of the following would cause the labor demand curve to shift from D1 to D2? An increase in workers' tastes for leisure time A decrease in the wage rate in a neighboring labor market An increase in the price at which firms sell their output All of the above are correct. Previous Next