Dynamic and static games have outcomes that A) may be different. B) are always different. C) are not Nash equilibria. D) result from dominant strategies. ANSWER A
Date: September 9th, 2020
A competitive market structure differs from the monopoly, oligopoly, and monopolistic competition structures in the A) producers’ ability to set price. B) profit maximization condition. C) amount of long run profit. D) entry conditions. ANSWER A
Date: September 9th, 2020
In Table 1, steaks are classified as a(n) A) normal good. B) positive good. C) inferior good. D) marginal good. ANSWER A
Date: September 9th, 2020
A dynamic game is a game A) in which the players are highly animated. B) that is sequential or repeated. C) where the payoffs change frequently. D) that has actions instead of strategies. ANSWER B
Date: September 9th, 2020
If a person is risk neutral, then she A) is indifferent about playing a fair game. B) will pay a premium to avoid a fair game. C) has a horizontal utility function. D) has zero marginal utility of wealth. ANSWER A
Date: September 9th, 2020
In Table 1, pizzas are classified as a(n) A) normal good. B) positive good. C) inferior goods. D) marginal good. ANSWER C
Date: September 9th, 2020
Oligopoly differs from monopolistic competition in that an oligopoly includes A) product differentiation. B) barriers to entry. C) no barriers to entry. D) downward-sloping demand curves facing the firm. ANSWER B
Date: September 9th, 2020
If a particular production process is subject to diminishing marginal returns to labor at every level of output, then at every level of output A) AC is upward sloping. B) MC exceeds AVC. C) AFC is constant. D) All of the above. ANSWER B
Date: September 9th, 2020
Perfect competition and monopolistic competition are similar in that firms in both types of market structure will A) act as price takers. B) produce a level of output where price equals marginal cost. C) earn zero profit in the long run. D) act as price setters. ANSWER C
Date: September 9th, 2020
A firm sets its output where A) marginal profit minus marginal cost equals zero (MP – MC = 0). B) marginal revenue minus marginal profit equals zero (MR – MP = 0). C) marginal revenue minus marginal cost equals zero (MR – MC = 0). D) marginal revenue minus marginal cost is greater than zero […]
Date: September 9th, 2020
