If a firm with monopoly pricing power in the market faces a demand curve of P = 2,000 - 2Q and marginal cost of MC = 1,100 + 2Q, then the firm will produce
A. 542 units.
B. 900 units.
C. 200 units.
D. 150 units.
Answer: D
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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__f1q385g1.jpg" alt="" style="vertical-align: 0.0px;" height="203" width="377" />This game is ________ because ________.
A. not a prisoner's dilemma; cheating is better for both
B. a prisoner's dilemma; not cheating is better for both
C. not a prisoner's dilemma; OPEC does not have a dominant strategy
D. a prisoner's dilemma; cheating is better for both
The analysis of how asymmetric information problems affect economic behavior is called ________ theory
A) uneven B) parallel C) principal D) agency
In the long run, a monopolistically competitive firm and a perfectly competitive firm both produce at minimum average cost.
Answer the following statement true (T) or false (F)
Nearly 80 percent of the federal government receipts come from
a. individual and corporate income taxes. b. individual income taxes and social insurance revenues. c. corporate income taxes and excise taxes. d. individual income taxes and excise taxes.