Which of the following is a true statement about signaling games?
a. In a separating equilibrium, the second mover's posterior beliefs are the same as his priors.
b. In a separating equilibrium, Bayes' rule cannot be used to compute posterior beliefs (because it produces an undefined answer).
c. In a pooling equilibrium, both the first and second movers choose the same action.
d. In a pooling equilibrium, the second mover learns nothing from the first mover's action.
d
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The market demand curve is the horizontal summation of all individual demand curves.
Answer the following statement true (T) or false (F)
Suppose that the market demand curve is 
and the market supply curve is 
.
a. Calculate the equilibrium price and output level.
b. Suppose a price floor of 16 is imposed in this market. What is the new equilibrium quantity transacted in the market?
c. How does the price that firms receive -- net any additional marginal effort costs they incur -- compare to the price consumers pay? d. What is the total cost of the additional effort firms have to exert in equilibrium? What will be an ideal response?
In monopolistic competition, there are ________
A) many firms selling products for which no good substitutes exist B) many firms selling similar but slightly different products C) many firms, each selling an identical product D) a small number of firms, each selling an identical product
If a tax is proportional, the average tax rate
a. remains the same as income rises. b. rises as income rises. c. falls as income rises. d. falls as income falls.