(no need explanation only answer will be fine , Thanks)

1.Assuming a stable demand curve, if a profit maximizing monopolist suddenly discovers that MR > MC, it will respond by

a. increasing output and lowering price

b. decreasing output and lowering price

c. increasing both output and price

d. decreasing both output and price

2.An investment opportunity is a sure thing; it will pay off $100 regardless of which of the three possible outcomes comes to pass. The variance of this investment opportunity:

a. is 0.

b. is 1.

c. is 2.

d. is -1.

e. cannot be determined without knowing the probabilities of each of the outcomes.

3.There are only two gasoline stations in a small isolated town. If they each set a high price, they each earn $50. If they each set a low price, they each earn $25. If one firm sets a low price while the other firm sets a high price, the low-price firm earns $70 while the high-price firm earns $10.

a.There is only one Nash equilibrium

b. There is more than one Nash equilibrium.

c. There is on Nash equilibrium.

4.A dominant strategy can best be described as:

a. a strategy taken by a dominant firm.

b. the strategy taken by a firm in order to dominate its rivals.

c. a strategy that is optimal for a player no matter what an opponent does.

d. a strategy that leaves every player in a game better off.

e. All of these

5.When demand is elastic, an increase in price causes the seller's total revenue to:

a. increase.

b. decrease.

c. remain the same.

d. gradually fall to zero.

6.For any given level of output:

a. marginal cost must be greater than average cost.

b. average variable cost must be greater than average fixed cost.

c. average fixed cost must be greater than average variable cost.

d. fixed cost must be greater than variable cost.

e. None of these

7.Rocky thinks that a sip of Coke and a sip of Pepsi are perfect substitutes. If Coke sells for $2 per case and Pepsi sells for $1 per case, then

a. Rocky will buy twice as much Pepsi as Coke.

b. Rocky will spend twice as much on Coke as he does on Pepsi.

c. Rocky will buy equal amounts of Coke and Pepsi.

d. Rocky will not buy any Coke.