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Scenario 17-4. ​ Consider two cigarette companies, PM Inc. and Brown Inc. If neither company advertises, the two companies split the market and earn $50 million each. If they both advertise, they again split the market, but profits are lower by $10 million since each company must bear the cost of advertising. Yet if one company advertises while the other does not, the one that advertises attracts customers from the other. In this case, the company that advertises earns $60 million while the company that does not advertise earns only $30 million. Refer to Scenario 17-4. In 1971, Congress passed a law that banned cigarette advertising on television. If cigarette companies are profit maximizers, it is likely that

  This mammary gland is ____________________________________________.

Figure 21-16 Refer to Figure 21-16. The price of X is $25, the price of Y is $25, and the consumer’s income is $100. Which point represents the consumer’s optimal choice?

Table 17-25 There are just two producers of a certain product. Each is considering offering promotional discounts.     Firm A     Does not offer discount Offers discount Firm B Does not offer discount Firm A profit = $90,000 Firm B profit = $90,000 Firm A profit = $120,000 Firm B profit = $70,000 Offers discount Firm A profit = $70,000 Firm B profit = $120,000 Firm A profit = $80,000 Firm B profit = $80,000 Refer to Table 17-25. At the Nash equilibrium, how much profit will Firm A earn?

Figure 21-17 Refer to Figure 21-17. When the price of X is $6, the price of Y is $24, and income is $48, Paul’s optimal choice is point C. Then the price of Y decreases to $8. Paul’s new optimal choice is point

What provisions might you make if the block area is too small and negative behavior develops?

Refer to Figure 16-2. If the average variable cost is $24 at the profit-maximizing quantity, and if the firm’s fixed costs amount to $60, then the firm’s maximum profit is

Andi uses all of her income to purchase books and games. At any two points A and B on Andi’s budget constraint,

Scenario 14-4 The information below applies to a competitive firm that sells its output for $40 per unit. • When the firm produces and sells 150 units of output, its average total cost is $24.50. • When the firm produces and sells 151 units of output, its average total cost is $24.55. Refer to Scenario 14-4. Suppose the firm is producing 150 units of output and its fixed cost is $975. Then its average variable cost amounts to

Willie’s Wading Adventures sells hip waders for fishing and duck hunting in a perfectly competitive market. If hip waders sell for $100 each and average total cost per unit is $95 at the profit-maximizing output level, then in the long run