Flag question: Question 2

A craft chocolate producer considers hiring one extra worker in production. Currently, the shop is selling 200 chocolate bars per day at a price of $6. With one extra worker, the manager estimates that they would be able to increase the output to 250 chocolate bars per day and that they would need to lower the price to $5.50 in order to sell them. The daily salary of this new employee would be the same as for the existing ones: $150. What should the manager do?

Group of answer choices

Increase the salary of all employees

Turn down the new worker and maintain the same number of employees

Hire the extra worker

Increase its selling price

Reduce the number of workers working in his chocolate place

Flag question: Question 3

All the answers below are necessary conditions for a firm to be able to use segment pricing, except:

Group of answer choices

The firm faces a downward sloping demand curve

The firm can distinguish between different groups of customers with different price sensitivities

The firm is a price searcher

The firm has the ability to prevent any form of resell and arbitrage

The firm's customers all have the same demand curve

Flag question: Question 4

Below is a matrix of payoffs for a game. What is/are the Nash equilibrium/equilibria?

Group of answer choices

There are two Nash equilibria: A: Left, B: Left; and A: Right, B: Right

There is no Nash equilibrium in pure strategies

A: Right, B: Right

There are two Nash equilibria: A: Right, B: Left; and A: Left, B: Right

A: Left, B: Left

Flag question: Question 5

The market for good X was in a situation of perfect competition, until a license to operate was delivered to only one firm, making it a monopoly. What will be the impact on the market (assuming the cost of producing the good is the same for the firm with the license as for all other firms that are now excluded from producing)?

Group of answer choices

Producer surplus of the licensed firm will be higher

The quantity produced of good X will decrease

Consumer surplus will be lower

All of the other answers

Consumers will face a higher price for good X

Flag question: Question 6

A large media company is employing three PR managers, each earning $250 per day. Due to the pandemic and the increased demand for TV shows, a fourth manager needs to be hired. The company is aware that PR managers in the media industry know each other well. It is also common knowledge that PR managers can get quite jealous and would refuse to work if not paid the same salary as their peers in the same firm. A PR manager has been interviewed for the fourth position and would be willing to join the media company for a salary of 300$ per day. The three PR managers already employed learnt about this request. What is the marginal cost (per day) of hiring the fourth PR manager?

Group of answer choices

$250

$450

$200

$550

$300