Suppose there are 50 firms in a perfectly competitive market and each maximizes profit at 50 units of output when market price is $15.00 per unit. One of the points on the market supply curve must be at:
A. Price = $15 and Quantity supplied = 2,500.
B. Price = $3.33 and Quantity supplied = 2,500.
C. Price = $15 and Quantity supplied = 25,000.
D. Price = $3.33 and Quantity supplied = 25,000.
Answer: A
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Mexico and the members of OPEC produce crude oil. Realizing that it would be in their best interests to form an agreement on production goals, a meeting is arranged and an informal, verbal agreement is reached. If both Mexico and OPEC abide by the agreement, then OPEC's profit will be $200 million and Mexico's profit will be $100 million. If both Mexico and OPEC cheat on the agreement, then OPEC's profit will be $175 million and Mexico's profit will be $80 million. If only OPEC cheats, then OPEC's profit will be $185 million, and Mexico's profit will be $60 million. If only Mexico cheats, then Mexico's profit will be $110 million, and OPEC's profit will be $150 million. You may find it helpful to fill in the payoff matrix below. src="https://sciemce.com/media/4/ppg__rrr0818190951__f1q239g1.jpg" alt="" style="vertical-align: 0.0px;" height="203" width="377" />Which of the following statements is correct?
A. OPEC's dominated strategy is to cheat on the agreement.
B. OPEC's dominant strategy is to cheat on the agreement.
C. OPEC does not have dominant strategy.
D. OPEC's dominant strategy is to abide by the agreement.
What is the effect on the equilibrium price and equilibrium quantity of orange juice if the price of apple juice decreases and the wage rate paid to orange grove workers increases?? The equilibrium price of orange juice ?______ and the equilibrium quantity? ______.
Fill in the blank(s) with the appropriate word(s).
International comparisons of per capita GDP may not reflect the standard of living because __________. a. currency exchange rates may not fully account for differences in purchasing power, and thus people in a country with high per capita GDP may have a lower standard of living because of high local prices for food, housing, or other necessities. b. people in some countries enjoy poverty and do
not mind a lack of access to medicine, education, nutritious food, and safe drinking water. c. markets do not exist in less-developed countries. d. None of the answers above are correct.
Maurice Richard loves to play hockey. He would play the minor leagues and the major leagues with equal gusto. Suppose he earned $35,000 playing for the minor league Urbana Tigers and "gets the call" from the Dallas Stars, a major league team. He excitedly tells his wife, an economist, that his wage is now $379,000 (that's the contract he signed) and she informs him that his wage-related rent is
a. $344,000 b. $379,000 c. $35,000 d. $414,000 e. $0 because he signed the "wage" contract