If the market price of a product falls below the firm's minimum AVC, then a perfectly competitive firm should...

a.Shut down.

b.Increase production.

c.Increase its price.

d.Maintain production at its current level.

A _____ is the representation of a game's players, their strategies and their payoffs from the various outcomes.

a.Payoff matrix.

b.Repeated game.

c.Prisoners' dilemma.

d.Dominant strategy.

If demand is given by P = 100 - Q, supply is given by P = 30 + Q and there is a negative externality of $10 per unit produced, then the socially optimal quantity is...

a.30.

b.70.

c.35.

d.65.