Refer to the game in Scenario 13.6. What will occur if ERS Co plays a maximin strategy?
A) -$100, -$1
B) $2, -$0.5
C) $1, -$1
D) -$0.5, -$0.5
E) There is a 0.25 chance of each outcome in that case.
D
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Suppose a single firm has constant marginal cost and faced the demand curve 
a. Illustrate in this graph how a monopolist who cannot price discriminate would price this good. What is the monopoly price and quantity?
b. Suppose two firms with the same marginal cost as the monopolist operated in this market instead. Suppose quantity is the strategic variable and the two firms simultaneously choose quantity. On a graph with firm 1's output on the horizontal and firm 2's output on the vertical, illustrate firm 2's best response function with numerical labels for each intercept. c. Add firm 1's best response function and determine the Nash equilibrium quantities. d. What's the equilibrium price resulting from the quantities you determined in (c)? e. What would be the equilibrium price if the strategic variable for the firms were price instead? What will be an ideal response?
Based on the data in the table above, the economy will be in short-run equilibrium at a price level of
A) 90. B) 110. C) 100. D) 120.
The long-run aggregate supply curve is determined by all of the following EXCEPT
A) aggregate demand. B) endowments. C) technology. D) the amount of resources that exist in the economy.
The emphasis on the greater incentives to produce, created by lower taxes, has come to be known as:
a. the trickle-down economics. b. the supply-side economics. c. the paradox of thrift. d. the permanent income hypothesis. e. monetarism.