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Which of the below is true? 42 inc Bob and Jane are competitors in the grocery store market and each is trying to decide if it is Higher immigration to a country will_ the quantity of labour supplied, worthwhile to open more stores. If both of them open more stores, each will earn a profit of $3 Select an answer and submit. For keyboard navigation, use the up/down arrow ke the quantity of labour demanded, and equilibrium wage. million. If neither of them opens more stores, each will earn a profit of $4 million. If one opens a to select an answer. new store and the other doesn't, then the one who opens will earn a profit of $5 million and the other will earn $2 million. What is the likely outcome of this situation? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. Labour demand is derived. 2243.j a Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a increase; increase; lower a Only Bob opens more stores, since this is the Nash equilibrium. b Labour demand is differentiated. b increase; not change; lower b Only Jane opens more stores, since this is the Nash equilibrium. Labour demand is equal to marginal product of labour. Labour demand is equal to the value of the marginal product. C decrease; increase; raise Both of them open more stores, since this is the Nash equilibrium. d b d Neither of them open more stores, since this is the Nash equilibrium. e Labour demand is elastic. d decrease; not change; raise Q Both a) and d) Why are cartels difficult to preserve? 3 Why are computer programmers paid a higher wage than a gas station worker? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. g Both b) and e) Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer, a Collusion is tacit. Who has a greater opportunity cost of an hour of leisure, a surgeon or a janitor? And who would we a computer programmers have a higher value of marginal product. expect to work longer hours? b Competition laws are difficult to enforce. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. b computer programmers do not exhibit diminishing marginal product. 2 The surgeon has a higher opportunity cost of enjoying leisure so we would expect them to work longer hours. Cartel agreements are beneficial for monopoly outcomes. Shy the supply of computer programmers is lower than the supply of gas station C workers. b The surgeon has a higher opportunity cost of enjoying leisure so we would expect them to work less hours: d There is inevitable tension between cooperation and self-interest in a cartel. P a) and c) are both correct. The janitor has a higher opportunity cost of enjoying leisure so we would expect them to work longer hours. 4 6 e all of the above. d The janitor has a higher opportunity cost of enjoying leisure so we would expect them to work SOU...U less hours