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Alpha and Beta are the only firms selling perogies in Pittsburgh. Each firm must decide on whether to offer a discount to students to compete for customers. If one firm offers a discount but the other does not, then the firm that offers the discount will increase its profit. The table shows the payoff matrix for this game.Does Alpha have a dominant strategy and if so, what is it?

Jennifer’s Bakery Shop produces baked goods in a perfectly competitive market. If Jennifer decides to produce her 100th batch of cookies, the marginal cost is $120. She can sell this batch of cookies at a market price of $110. To maximize her profit, Jennifer should

LZ and AP are the only two airport shuttle and limousine rental service companies in the mid-sized town of Erie, PA. Each firm must decide on whether to offer its customers a mid-week discount for airport transportation. The table shows the payoff matrix for profits earned by each company based on either offering or not offering the discount. Is there a dominant strategy for AP and if so, what is it?

**The reason monopolistically competitive firms have difficulty maintaining a profit in the long run is that:

The demand curve for a monopoly’s product is      

The figure above shows the market supply of labor curve. Which of the following might be the reason the labor supply curve shifted from S0 to S1?

The payoff matrix shown above assumes that Pretty Petunia’s (PP) and Fabulous Flowers (FF) must decide whether to offer same-day delivery for their products. The matrix shows how much profit each firm will earn if it does or does not offer same-day delivery. The amount of profit for one firm depends on whether the other firm offers same-day delivery. Which of the following statements is true?

Use the figure above to answer this question.  If the firm is maximizing profit, it will produce ________ units and make an economic profit of ________.

Derived demand means that the demand for a factor of production is derived from the

Stacey is producing candles in a perfectly competitive market. When she produces 500 candles, her total cost is $250. If she produces one additional candle, her total cost increases to $260. In order to maximize her profit, she should produce the additional candle