The demand equation for a single price monopolist is P = 50 - Q. The marginal revenue equation for this monopolist is
A. 50 - Q.
B. 100 - Q.
C. 25 - Q.
D. 50 - 2Q.
Answer: D
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If slope = 2 for a line on a graph with x on the horizontal axis and y on the vertical axis, then if
a. x decreases by 4, y decreases by 8 b. x = -4, then y = -2 c. y decreases by 4, x decreases by 8 d. x = -4, y = -8 e. x increases by 4, y decreases by 8
If a person expects the price of pumpkins to increase next month, then that person's current demand for pumpkins will increase
a. True b. False Indicate whether the statement is true or false
Answer the following statement true (T) or false (F)
1) If one player in a game has a dominant strategy, the other player must also have a dominant strategy. 2) A player is said to have a dominant strategy when one of the options available is superior, regardless of what strategy the other player chooses. 3) If neither player has an incentive to deviate from the outcome of a game, the outcome is a Nash equilibrium. 4) A Nash equilibrium can only occur in repeated games. 5) One characteristic of sequential games is that they all have first-mover advantages.
The monopolist should NEVER produce in the
A) elastic segment of its demand curve because it can increase total revenue and reduce total cost by lowering price. B) inelastic segment of its demand curve because further lowering of the price reduces total revenue. C) range of output for which the price elasticity of demand is infinity. D) range of output for which there is a price elasticity exceeding one.