spring 2016 exam 5 v1 key - VERSION 1 Name ECON 2020 Exam#5 DIRECTIONS Read each question and EVERY possible answer VERY carefully Select the best

spring 2016 exam 5 v1 key - VERSION 1 Name ECON 2020 Exam#5...

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VERSION 1 1 Name _________________ ECON 2020 Exam #5 DIRECTIONS: Read each question and EVERY possible answer VERY carefully. Select the best answer from the alternatives. Good luck! Use the following game to answer question 1. Cal Naughton Jr. Collude Cheat $20,000 profit $30,000 profit Collude $20,000 profit -$1,000 profit Ricky Bobby -$10,000 profit $0 profit Cheat $30,000 profit $0 profit 1. With respect to the above “game,” which of the following statements is FALSE? A.The players maximize their individual welfare by colluding. B.The players maximize total producer welfare by colluding. C.Consumers are better off when the players collude. D.A and C only E.B and C only 2. All firms find the profit-maximizing level of employment where 3. How would an increase in the supply of a product affect the demand for labor? (HINT: remember derived demand.)
VERSION 1 2 Use the following graph to answer questions 4 5. 4. The optimal _____ for this market is _____ . 5. Beforeregulation, the market price and quantity will be A. $40; 85 units B. $34; 85 units C. $34; 110 units D.

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