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, u: i..-....D .- ._..-..._. '1___.._.. __._ ....-.__,_-..__. \\\\ \\ gummy..- u. m. , Qpistlnn 4 2.5 points Save mm An industry with only one producer has a demand curve of P = 90 - Q. with price in dollars and quantity in thousands The monopolists marginal cost curve is MC = 30 + 2Q What is the deadweignt lass of monopoly in this industry? 0 550,000 0 572,667 0 537,500 0 5100.000 Question 2 2.5 points Save Answer Ellie has been working for an engineering firm and earning an annual salary of $80,000. She decides to open her own engineering business. Her annual expenses will include $15,000 for office rent, $3,000 for equipment rental, $1,000 for supplies, $1,200 for utilities, and a $35,000 salary for a secretary/bookkeeper. Ellie will cover her start-up expenses by cashing in a $20,000 certificate of deposit on which she was earning annual interest of $500. Which of the following statements is correct? A $185,700 revenue will yield Ellie's business $50,000 in economic profits. O Ellie's annual implicit costs will equal $55,200. O A $185,700 revenue will yield Ellie's business $50,000 in accounting profits. O Ellie's annual accounting costs will equal $80,500.Question 3 2.5 points Save Answer Karen's cookie shop tries to maximize its profit by producing 800 cookies a day. Due to health guidelines in place for the Covid-19 pandemic, she has to purchase additional cleaning stuff and the fixed costs increase and the market price remains constant, then the short run profit-maximizing level of output per day O is still 800 cookies. O is less than 800 cookies. O becomes zero. is more than 800 cookies._ "'-""ia- __ _.._..._. _'____._.. ..... __._ ...._ . _-._-.._-. Question 1 Suppose the government implements a tax on the production of corn. which of the following would you expect to happen? 0 The equilibrium quantity of corn. the effective price of corn paid by the buyers. and the consumer surplus would all decrease. The equilibrium quantity of corn. the consumer surplus. and the benefits to the producers of corn would all increase. The equilibrium quantity of corn. the consumer surplus. and the benefits to the producers of corn would all decrease. The equilibrium quantity of corn. the effective price of corn paid by the buyers. and the consumer surplus would all increase. 000 Question 7 2.5 points Save Answer The table below represents two firms (Firm A and Firm B) that operate in the same industry. Each firm must decide how much output to produce this year. The profits for each firm are shown in the table below (Profit for Firm A and Profit for Firm B). Firm B Q=7 0=8 Firm A Q=7 (20,14) (15,15) Q=8 (15,18) (13,20) Does Firm A have a dominant strategy, and if so at what quantity? No, because it depends on what quantity firm A chooses. O Yes, at a quantity of 7. O Yes, at a quantity of 8. No, because it depends on what quantity firm B chooses.Question 9 Quantity of Output Fixed Costs Variable Costs 15 0 15 12 15 23 DANO 15 38 15 46 10 15 70 Based on the above table, what is the marginal cost of producing the 6th unit? 0 5.5 10.5 0 7.5moving to anowner question will save this response. Question 12 Dan is the only seller of widgets in town. The market for widgets is characterized by the following: Demand: P = 175 - Q Marginal Revenue: MR = 175 - 2Q Marginal Cost: MC = 25 +3Q What is the Monopolist equilibrium price and quantity? P = $100; Q = 60 O P = $145; Q = 30 P = $50 ; Q = 85 P= $115; Q =50Qpistion 13 2.5 points Save Answer Bob Left Right M\" Left 2,2 2,3 Right 4,5 3,4 Suppose Alice and Bob are playing a game in which both must simultaneously choose Left or Right. The payoff matrix shows the payoff each person will earn as a function of both their choices. For example, the upper left cell shows that if Alice and Bob both choose Left. they will each receive a payoff of 2. 0 Alice does not have a dominant strategy and Bob has a dominant strategy. Alice has a dominant strategy and Bob does not have a dominant strategy. 0 0 Neither player has a dominant strategy. 0 Alice and Bob both have dominant strategies. Question 14 2.5 points Save Answer Within Game Theory, a Prisoner's Dilemma is a scenario where each player playing their dominant strategy leads to a less than optimal outcome for the group, and therefore is useful in understanding why cooperation between parties often fails. Which of the following is a Prisoner's Dilemma? a) Player 2 c) Player 2 Strategy A Strategy B Strategy A Strategy B Player 1 Strategy 1 (6,2) (3,3) Player 1 Strategy 1 (2,8) (6,6) Strategy 2 (3,3) (2,6) Strategy 2 (3,3) (8,2) b) Player 2 d) Player 2 Strategy A Strategy B Strategy A Strategy B Player 1 Strategy 1 (-3,-3) (10,-10) Player 1 Strategy 1 (0,0) (5,-5) Strategy 2 (-10,10) (-25,-25) Strategy 2 (-5,5) (0,0) Od O b O a
