A store is choosing between advertising a credit card fee or a discount for paying cash to its customers. More customers are likely to pay cash if the store owner advertises:
A. either one; since it's the same outcome, people won't care one way or another.
B. neither one; since people are not likely to pay cash more regardless of how it's advertised.
C. the discount for paying cash.
D. the credit card fee.
Answer: D
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The payoff matrix below shows the payoffs (in millions of dollars) for two firms, A and B, for two different strategies, investing in new capital or not investing in new capital. 
An industry spy comes to firm B and claims to know what firm A has decided. Given that each firm already knows the payoff matrix, how much would this information be worth to firm B?
A. $0. B. $50 million. C. $70 million. D. $30 million.
The long run outcome of the monopolistically competitive firm:
A. occurs where price equals marginal cost. B. maximizes total surplus. C. creates welfare loss. D. does not maximize profits.
The stand-alone selling price of a good or service may be highly uncertain because the seller
A. has not previously sold the good or service. B. sells the product or service in various combinations with other goods or services. C. provides the same good or service to different customers at substantially different prices
Suppose that corn farmers want to increase their total revenue. Knowing that the demand for corn is inelastic, corn farmers should
a. plant more corn so that they would be able to sell more each year. b. increase spending on fertilizer in an attempt to produce more corn on the acres they farm. c. reduce the number of acres on which they plant corn. d. contribute to a fund that promotes technological advances in corn production.