Micro economics

Question 9 A firm with market power engages in price discrimination in order to A cover the cost of serving each consumer B increase its profits C charge a lower price D produce the allocationy efficient quantity E increase consumer surplusQuestion 10 Price, Cost MC MR ATC D 0 Q1 Q2 Q3 QA Q5 Quantity For the monopolistically competitive firm represented by the graph above, the allocationficient quantity of output is A Q1 B Q2 C Q3 D QA E Q5Question 11 A monopolistically competitive firm's demand curve will be least elastic if @ @ the number of rival firms producing very similar products increases the number of rival firms producing more differentiated products increases the number of rival firms producing very similar products decreases the number of rival firms producing more differentiated products decreases a monopolistically competitive firm's demand curve becomes perfectly elastic Question 12 Monopolistically competitive markets are characterized by @ @ a large number of firms economies of scale standardized products mutual interdependence positive economic profit in the long run Question 13 Zeb Lower Prices Same Prices i Lower Prices $300; $400 $600; $200 Same Prices $100; $700 $400; $500 The above payoff matrix illustrates the daily profit for two restaurant owners, Art and Zeb. Each owner has the choice to lower prices for early bird customers or keep prices the same. The first entry in each cell indicates the profits for Art, and the second entry in each cell indicates the profits for Zeb. Each restaurant independently and simultaneously chooses its action and has complete information of the payoff matrix. Which of the following is a Nash equilibrium? () Both Art and Zeb will lower prices. @ Artwill lower prices, and Zeb will charge the same prices. Art will charge the same prices, and Zeb will lower prices. Both Art and Zeb will charge the same prices. There is no Nash equilibrium. @ Question 14 Sam's Lower Prices Same Prices Amys Lower Prices $300; $400 $600 ; $200 Same Prices $100;$700 $400; 8500 The above payoff matrix illustrates the daily profit for two restaurants, Amy's and Sam's. Each restaurant has the choice to lower prices for early bird customers or keep prices the same. The first entry in each cell indicates the profits for Amy's, and the second entry in each cell indicates the profits for Sam's. Each restaurant independently and simultaneously chooses its action and has complete information of the payoff matrix. Based on the information and assuming Amy's and Sam's do not cooperate, which action will each pursue? Both Amy's and Sam's will lower prices. Amy's will lower prices, and Sam's will charge the same prices. @ Amy's will charge the same prices, and Sam's will lower prices. Both Amy's and Sam's will charge the same prices. There is insufficient information to answer the question. Question 15 Zeb's Lower Prices Same Prices e Lower Prices $300; $500 $200; $600 Same Prices $100; $700 $400; $800 The above payoff matrix llustrates the daily profits for two restaurants. Each restaurant has the choice to lower prices for early bird customers or keep prices the same. The first entry in each cell indicates the profits for Art's, and the second entry in each cell indicates the profits for Zeb's. Each restaurant independently and simultaneously chooses its action and has complete information of the payoff matrix. Based on the information, does either firm have a dominant strategy? The dominant strategy for Art's is to lower prices. The dominant strategy for Art's is to charge the same prices. The dominant strategy for Zeb's is to lower prices. The dominant strategy for Zebs is to charge the same prices. Neither restaurant has a dominant strategy. @