The outcome of the game in the figure shown will be:
This figure displays the choices being made by two coffee shops: Starbucks and Dunkin Donuts. Both companies are trying to decide whether or not to expand in an area. The area can handle only one of them expanding, and whoever expands will cause the other to lose some business. If they both expand, the market will be saturated, and neither company will do well. The payoffs are the additional profits (or losses) they will earn.
A. Starbucks will expand and Dunkin Donuts will not.
B. Starbucks will not expand and Dunkin Donuts will.
C. Starbucks and Dunkin Donuts will both expand.
D. neither Starbucks nor Dunkin Donuts will expand.
A. Starbucks will expand and Dunkin Donuts will not.
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Use the following graph, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product, to answer the next question.
Sd + Q is the product supply curve after an import quota is imposed. A quota of y?w will result in a deadweight loss equal to areas
A. F + J. B. G + H. C. E + F + G + H + J. D. F + G + H + J.
Refer to Figure 4-10. Suppose that instead of a price ceiling, the government imposed a price floor of R1. What is the quantity of apartments demanded at the new price?
A) Q1 B) 0 C) Q0 D) Q*
Exhibit 13-3 A monopolist
In Exhibit 13-3, if this industry is regulated and the regulatory commission wants revenue to just cover cost, the proper price and output combination to be set is:
A. price = $10; output = 25. B. price = $8; output = 30. C. price = $5; output = 40. D. price = $4; output = 25.
If a firm uses only capital and labor as inputs, then what should the firm do at a given rate of production if the marginal product of labor per last dollar spent is lower than the marginal product of capital per last dollar spent?
A. The firm should decrease the quantity of capital and increase the quantity of labor. B. The firm should increase the quantity of capital and reduce the quantity of labor. C. The firm should decrease both the quantity of capital and the quantity of labor. D. The firm should increase both the quantity of capital and the quantity of labor.