O O O O [J a (04.02 MC) All changes sav. Use the graph to answer the question that follows. (2 points) Price MC - - - - Q Q Quantity 1 2 (umits) What would be the area of this firm's economic profits or economic losses? P1, M, G, P3 in profits P1, M, G, P3in losses P1, M, N, P, in profits P14, M, N, P, in losses The graph below represents the demand graph of a monopolist. (2 points) All changes saved MC $22 $20 $18 $16 $14 $12 Price $10 $8 $6 $4 Demand MR 10 20 30 40 50 60 70 80 90 100 Quantity The firm uses price discrimination to increase its profits. What is the change in the deadweight loss due to the price discrimination? O -$30 O $30 O -$60 O $60o O (J 10.(04.04 MC) A firm operating in monopolistic competition is maximizing its profit and earning positive economic profits. Which of the following must be true of its production? (2 points) The price is equal to average total cost at the quantity where marginal revenue equals marginal cost. The price is equal to average total cost, and marginal revenue is less than marginal cost. The price is less than average total cost at the quantity where marginal revenue equals marginal cost. The price is greater than average total cost at the quantity where marginal revenue is less than marginal cost. The price is greater than average total cost at the quantity where marginal revenue is equal to marginal cost. 13. (04.05 MC) Patricia owns a cleaning business with Sarah. They both have other jobs and are trying to determine the number of hours to work at the cleaning business. The following payoff matrix shows their daily incomes depending on the number of hours they work at the cleaning business. Sarah Full time Part time Patricia Full time $60, $60 $50, $80 Part time $80, $50 $55, $55 If Sarah works full time, Patricia should. If Patricia works full time, Sarah should (2 points) O Work part time; work full time O Work part time; work part time O Work full time; work part time O Work full time; work full time Insufficient data to determine15. (04.05 MC) Megan and Martha own competing hair salons that are in the same neighborhood. They are both considering offering their clients discounts in order to increase business. The payoff matrix shows their yearly incomes in thousands of dollars if they offer and do not offer discounts to their customers. Martha Discount No Discount Megan Discount $50, $75 $75, $60 No Discount $35, $90 $70, $85 If both Megan and Martha did not discount, what would each earn in yearly income? (2 points) O Megan would earn $50,000; Martha would earn $75,000. O Megan would earn $75,000; Martha would earn $60,000. Megan would earn $35,000; Martha would earn $90,000. Megan would earn $70,000; Martha would earn $85,000. O Megan would earn $35,000; Martha would earn $85,000.N O O O O O (J 14.(04.05HC) Company A and Company B are each telecommunications manufacturers. Both companies manufacture the same products, and they make their decisions based on the other's actions. Both companies are considering opening retail outlets to increase their profits. The payoff matrix shows the profits of the companies in millions of dollars if they choose to open retail outlets. Company B Retail outlets No retail outlets Company A Retail outlets $25,.562b s30:515 No retail outlets $35, $35 $34, 820 The government imposes a new $5 million tax to open retail outlets. What is the expected outcome of the new payoff matrix, given the tax? (2 points) The Nash equilibrium will be that both companies will not open retail stores. The Nash equilibrium does not change as a result of the tax. Company A's dominant strategy remains the same, and it will open retail stores. Company B's dominant strategy remains the same, and it will not open retail stores. Company A's dominant strategy changes, and both companies will open retail stores