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Midterm_2021_sol.pdf - Midterm Exam 1 ECON 305 Instructor:...

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Midterm Exam 1 ECON 305Instructor: Laura LasioNovember 8, 2021InstructionsYou have 120 minutes to answer all questions.This is a closed-book / closed-notes / closed-slides non-cooperative exam.You can use calculators as long as they are NOT programmable.1. True or False (10 points)RANDOMIZE 5 QUESTIONS FROM THE FOLLOWING SETSay if the following claims are true or false. If true, provide a short explanation; if false, explainwhy and under which conditions they might be true. Be concise (1-3 sentences per question), referto concepts and formulae. Each correct answer gives2 points.1. Rate-of-return pricing is the best option to regulate the price of a monopolist.
2. Welfare maximization can only be achieved in perfect competition.
3. A strategy is a player’s best response if it yields the highest payoff regardless of the otherplayers’ strategy choices.
4. The HHI index is preferred to the C4 because it includes the shares of all firms.

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Term
Fall
Professor
ChristopherGreen

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