The above figure shows the payoff matrix for two firms, A and B, choosing to produce a basic computer or an advanced computer. Which of the following is a Nash equilibrium?
A) Firm A produces an advanced computer, and firm B produces a basic computer.
B) Both firms produce advanced computers.
C) Both firms produce basic computers.
D) None of the above.
A
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A nation can produce two products: steel and wheat. The table below is the nation's production possibilities schedule:Production Possibilities ScheduleProductABCDEFSteel012345Wheat100907555300Which of the following output-combinations is unattainable?
A. 4 units of steel and 55 units of wheat B. 95 units of wheat and 0 units of steel C. 30 units of wheat and 3 units of steel D. 1 unit of steel and 80 units of wheat
The supply curve of labor to a monopsonist is
A) upward sloping. B) downward sloping because of the law of diminishing marginal returns. C) downward sloping, but not because of the law of diminishing marginal returns. D) horizontal.
If the minimum wage is set at a level below the equilibrium wage it:
A. would be a nonbinding minimum wage. B. will probably affect government jobs more than any other job market. C. would interfere with the market reaching equilibrium. D. will have a large effect.
In the extreme case of a perfectly contestable market:
A. profits will be the same as monopoly profits. B. profits will be the same as cartel profits. C. profits will be the same as duopoly profits. D. profits will be zero.