multiple choice

QUESTION 66 A monopolist O takes the price of its product as given and produces as much output as possible. can choose any price it wants, regardless of demand. can choose any price along the market demand curve. O chooses the price of its product so as to maximize the number of sales. QUESTION 67 Figure 14-1 Firm B Low Output High Output 120 135 Firm A Low Output 100 75 High Output 60 80 125 80 Reference: Ref 14-1 With respect to the payoff matrix in Figure 14-1, the Nash equilibrium is O both firms produce low output. both firms produce high output. Firm A produces low output and Firm B produces high output. Firm A produces high output and Firm B produces low output.QUESTION 68 Figure 14-1 Firm B Low Output High Output 120 135 Firm A Low Output 100 75 80 High Output 60 125 80 Reference: Ref 14-1 With respect to the payoff matrix in Figure 14-1, the dominant strategy equilibrium is O both firms produce low output. both firms produce high output. Firm A produces low output and Firm B produces high output. Firm A produces high output and Firm B produces low output.QUESTION 69 Figure 14-1 Reference: Ref 14-1 With reference to the payoff matrix in Figure 14-1, Firm A's dominant strategy is 0 low output. 0 high output. O high output if Firm B selects high output and low output if Firm B selects low output. 0 neither high nor low output, since the firm does not have a dominant strategy