Consider the same game between the fishermen in the previous question. How does the total number of fish caught in the Nash equilibrium compare to the number they would catch if they belonged to same company, so shared revenues and costs equally?
a. No change.
b. They would catch more if they worked in the same company.
c. They would catch less if they worked in the same company.
c
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To answer the next question, use the following table, which shows the demand schedule faced by Ninaskets, a pure monopoly selling baskets.PriceNumber of Baskets Sold$203185167141012151030What is the change in total revenue if the pure monopoly lowers the price from $20 to $18?
A. $10 B. $20 C. $30 D. $40
Assume the economy is closed and that it is operating at full employment. Which statement is TRUE when the size of the budget deficit decreases?
A) The increased amount of public goods will crowd out privately produced goods. B) A reduction in the growth of productivity, and a reduction in society's standard of living will occur. C) The interest rate will decrease, leading to an increase in investment and capital formation. D) Demand and supply of credit will increase.
The "miracle" of the market, as addressed in your text, refers to the countless goods and services of great complexity made abundantly available
A) under conditions of massive ignorance. B) with a minimum number of errors and mistakes. C) with few losses and bankruptcies. D) with no systematic or scientific way of explaining how it happens.
The demand curve faced by the monopolist
A) has a constant price elasticity. B) is the industry demand curve. C) is identical to the firm's MR curve. D) is identical to the firm's TR curve.