Question 1 1 pts Consider two Pistachio farmers sharing water from an aquifer. Numbers show prots this year based on the decision to conserve water or to not conserve water. Is there a dominant-dominant strategy equilibrium? Marley Conserve Don't Conserve Bob Conserve 3 +10 M +12 B + 1 M + 40 Don't Conserve B +30 M +2 B + 5 M + 5 0 Yes, Bob Conserves but Mariey does not 0 No. there is no domina nt-do minant strategy 0 Yes, neither party Conserves water 0 Yes, Marleyr Conserves but Bob does not Next - Question 2 1 pts Predatory pricing is O a legal attempt to eliminate competition by temporarily lowering prices to drive out competitors 0 an illegal attempt to eliminate competition by d ng up a geographic location with another rm without competing against each other 0 an illegal attempt to eliminate competition by temporarily lowering prices to drive out competitors 0 a legal attempt to eliminate competition by dividing up a geographic location with anotherm'l without competing against each other 4 Previous Next b D Question 3 1 pts In the long-run this profit-maximizing firm in monopolistic competition has economic profits of the area: Supporting Materials ATC Price Demand Quantity O (G-D) x H O (B-F) x K O (D-G) x H O It would exit the industry O (E-C) x J O (C-E) x J O (F-B) x K Previous NextD Question 4 1 pts In the short-run this profit-maximizing firm in monopolistic competition has economic profits of the area: Supporting Materials Price Demand Quantity O (F-B) x K O (G-D) x H O (D-G) x H O It would lose fixed costs only O (B-F) x K O (E-C) x J O (C-E) x J Previous NextQuestion 5 1 pts Two players (I and II) can either choose C or D with the payoff matrix above with the numbers representing something good how about millions of dollars. Player I's payoffs are shown rst. Player I has: Supporting Materials C II D O A dominant strategy of choosing D 0 Has no dominant strategy 0 A dominant strategy of choosing D only when player II chooses C 0 Has a dominant strategy of choosing C 1 Previous Next r Question 7 1 pts In the short-run this profit-maximizing firm in monopolistic competition would price at: Supporting Materials MC ATC AVG Demand MAR Quantity OB OE O G OC OD OA OF Previous NextQuestion 8 1 pts Two players (I and II) can either choose C or D with the payoff matrix above. The numbers represent millions of dollars the player gets. Player I's payoffs are shown rst. If both play their dominant strategy then: Supporting Materials II C D 0 They will minimize mutual gains. 0 Mutual gains will be 5 million. 0 We can not say what the outcome would be. 0 They will maximize mutual gains. 1 Previous Next - D Question 9 1 pts For a profit-maximizing firm in monopolistic competition: O MR will be greater than MC O The price charged will be greater than MC O AVC will be greater than MC O AVC will equal MC Previous Next