Competing macroeconomic models may be hard to test because people may change how they react when economic policies are changed.
Answer the following statement true (T) or false (F)
True
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Quick Buck and Pushy Sales produce and sell identical products and face zero marginal and average cost. Below is the market demand curve for their product. 
Suppose Quick Buck and Pushy Sales decide to collude and work together as a monopolist with each firm producing half the quantity demanded by the market at the monopoly price. If Quick Buck cheats by reducing its price to $1 and Pushy Sales matches the price cut, then if consumers are evenly split between the two firms, what will be Quick Buck's economic profit?
A. $3,000 B. $1,000 C. $1,500 D. $2,000
Tom and Jerry are the only members of society. The table above shows their marginal benefits from defense satellites, a public good. If the marginal social cost of a satellite is $54, the efficient quantity of satellites is
A) 0. B) 1. C) 2. D) 3.
What is the real dilemma facing the prisoners in the prisoners' dilemma game?
What will be an ideal response?
In the space provided in the graph above, draw a demand curve D1, and then draw a second demand curve, D2, that is less elastic.
