If the market elasticity of demand for potatoes is -0.3 in a perfectly competitive market, then the individual farmer's elasticity of demand
a. will also be -0.3.
b. depends on how large a crop the farmer produces.
c. will range between -0.3 and -1.0.
d. will be infinite.
d
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In the above figure, suppose that the government sets a limit that may be produced of 10 units of output and the price rises to $4. In comparison to a competitive market the producer surplus would rise by
A) $0. B) $5. C) $15. D) $20.
Refer to the payoff matrix below. In reference to the Nash equilibrium/equilibria in this game, which of the following is true?
Healthy Snacks and Best Treats are two firms competing in the health food snacks market. Both are considering introducing a new health food snack made purely of dried power fruits. The payoff matrix shows their net economic profit in millions for the different strategies.
A) There is one Nash equilibrium in this game.
B) There are three Nash equilibria in this game.
C) There are no Nash equilibria in this game.
D) There are two Nash equilibria in this game.
Why would a firm in balanced oligopoly choose a tit-for-tat strategy?
Under ________ taxation, tax payers at all income levels pay the same percentage of their income in taxes. Therefore it is also called a flat tax
a. progressive taxation b. proportional taxation c. regressive taxation d. marginal taxation