ALL QUIZES

Question 1

In a monopoly, profit is maximized when

Answer 1

MR = MC

Question 2

If AR = 12 - 8q what is the MR

Answer 2

MR = 12 - 16q

Question 3

If TC = 40 + 0.8q^2 then whats the MC

Answer 3

MC = 1.6q

Question 4

is it possible for a normal form game not to have a pure strategy nash equilibrium

Answer 4

yes

Question 5

In game theory assuming players are rational means

Answer 5

They will choose the option that gives them the most

Question 6

How to find the nash equilibrium

Answer 6

The option is when both sides get the same out, but it doesn’t deviate from their original strategy

Question 7

In the short-run what profits are in monopolistic competition

Answer 7

Supernormal

Question 8

In the long term how are the profits in monopolistic competition

Answer 8

0

Question 9

The cournot model is when firms choose output levels true or false

Answer 9

True

Question 10

The bertrand model is when firms decide on price true or false

Answer 10

True

Question 11

Are cartels always illegal

Answer 11

No

Question 12

In a perfectly competitive labour market, a workers value to the employer depends on how many units of goods she produces

Answer 12

False - depends also on price of good and wages

Question 13

MPL is the money value of additional output for employing another unit of labour - true or false

Answer 13

False - MPL is physical output, MVPL is money output

Question 14

If a firm has monopsony power in the labour market, its MCL will be horizontal - true or false

Answer 14

False - MCL will be sloping upwards

Question 15

A monopolist could face competition in the labour market - true or false

Answer 15

True

Question 16

Does a person have a comparative advantage over another if they can earn more performing a task than the other

Answer 16

No - Have a comparative advantage if their opportunity cost is lower than the others opportunity cost