Refer to Figure 16-5. Suppose the firm represented in the diagram decides to use a two-part pricing strategy such that it charges a fixed fee and a per-unit price equal to the monopoly price. What is the quantity it should produce?
A) 240 units B) 320 units C) 480 units D) 560 units
B
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Which of the following statements is true about the price elasticity of demand?
A) As the number of substitutes for a product increases, the price elasticity of demand for that good decreases. B) If the budget share of a particular good in a consumer's bundle increases, the price elasticity of demand for that good is likely to decrease. C) The price elasticity of demand for a good is generally higher in the long run than in the short run. D) The demand for a good with a price elasticity of demand of zero is highly responsive to price changes.
Consider the following payoff matrix facing Harry and Sally when each chooses to go to the coffee shop listed. Harry wants to avoid Sally at the coffee shop and is not happy when Sally ends up in the same shop he chooses. Sally would like to see Harry, and so she is not happy when Harry ends up in a different coffee shop. Harry StarbucksDunkin DonutsSally StarbucksH: ?1, S: 1H: 1, S: ?1 Dunkin DonutsH: 1, S: ?1H: ?1, S: 1Given this payoff:
A. both Harry and Sally have dominant strategies. B. Sally has a dominant strategy but Harry does not. C. Harry has a dominant strategy but Sally does not. D. neither Harry nor Sally has a dominant strategy.
Points outside the production possibilities curves:
A) are feasible and maximize efficiency. B) are not feasible because of a resource constraint. C) are feasible but not preferred because they are inefficient. D) are not feasible because they don't utilize all of the available resource.
Which of the following is not a resource for a society?
a. capital goods, like factories and machine tools b. entrepreneurship c. legal institutions d. labor