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Table 17-17 This table shows a game played between two firms, Firm A and Firm B. In this game each firm must decide how much output (Q) to produce: 2 units or 3 units. The profit for each firm is given in the table as (Profit for Firm A, Profit for Firm B). Firm B Q=2 Q=3 Firm A Q=2 (10, 10) (8, 12) Q=3 (12, 8) (6, 6)

Before you submit the test, show both sides of your scratch paper to the camera.   Have a good rest of the day!

Figure 13-9 The figure below depicts average total cost (ATC) functions in the short and the long run, for a firm that produces automobiles.  ATCD represents the long run ATC for this firm Refer to Figure 13-9. At levels of output higher than N, the firm experiences in the long run

Scenario 5-8:Suppose the demand function for good X is given by: Qdx =20-0.8Px + 0.8Py where Qdx is the quantity demanded of good X, Px is the price of good X, and Py is the price of good Y, which is related to good X. Refer to Scenario 5-8. Using the midpoint method, if the price of good X is constant at $10 and the price of good Y decreases from $20 to $10, the cross price elasticity of demand is about

In a particular market, market demand is given by the equation Qd=60 – P  and market supply is given by the equation Qs = P.  Suppose a per-unit tax is imposed that reduces the number of units bought and sold in the market to 25 units.

Pat is opening her own software business. She financed the business by withdrawing money from her personal savings account. When she closed the account, the bank representative mentioned that she would have earned $5,000 in interest next year. If Pat hadn’t opened her own business, she would have earned a salary of $125,000. In her first year, Pat’s revenues were $300,000. Which of the following statements is correct?

Consumer surplus under conditions of Monopoly in the figure above is

Figure 6-30 Panel (a)                                                                        Panel (b) Refer to Figure 6-30. In which market will the majority of the tax burden fall on sellers?

Suppose the demand curve is: P = 30 – 2QD and the supply curve is: P = 10 + 3QS. What is PRODUCER SURPLUS in the market at the equilibrium price and quantity?

Table 16-1 The following table shows the percentage of output supplied by the top eight firms in four different industries. Firm Industry A Industry B Industry C Industry D 1 38% 18% 52% 23% 2 33 16 13 16 3 14 15 11 10 4 7 12 8 9 5 3 11 6 8 6 1 9 4 2 7 1 7 2 2 8 1 7 1 2 Refer to Table 16-1. Which industry is the most competitive? (Hint: use the concentration ratio)