Refer to Game Matrix V. Which of the following values of X and Y result in the only Nash Equilibrium being (Yes, Yes)?
Game Matrix V
The following questions refer to the game matrix below. Each firm has a choice of saying Yes or NO. The profits each gets depend upon which it chooses.
a. X = 21, Y = 9.
b. X = 19, Y = 11.
c. X = 21, Y = 11.
d. It is not possible for (Yes, Yes) to be a Nash Equilibrium.
d. It is not possible for (Yes, Yes) to be a Nash Equilibrium.
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A firm's production function is the relationship between:
A) the inputs employed by the firm and the resulting costs of production. B) the factors of production and the resulting outputs of the production process. C) the demand for a firm's output and the quantity it is able to produce with available resources. D) the firm's production costs and the amount of revenue it receives from the sale of its output.
The discount rate:
A. is the rate of interest charged by the Fed when it lends money to private banks. B. is the reduction in the prime rate that big banks provide to corporate borrowers. C. is always equal to the market rate minus the core rate of inflation. D. is the rate that private banks charge other private banks for a loan.
The following graph shows the marginal and average product curves for labor, the firm's only variable input. The monthly wage for labor is $2,800. Fixed cost is $160,000.
When the firm uses 40 units of labor, how much output does it produce?
A. 1,600 units B. 2,800 units C. 4,000 units D. 400 units E. none of the above
If a perfectly competitive firm's price is above its average total cost, the firm
A) is earning a profit. B) should shut down. C) is incurring a loss. D) is breaking even.