MoreReviewQuestions - More Review Questions Question 7 (20...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
More Review Questions Question 7 (20 points) Consider an industry with two firms. The industry demand curve is as follows: Q total P 0 200 1 190 2 180 3 170 4 160 5 150 6 140 7 130 8 120 9 110 10 100 11 90 12 80 13 70 14 60 15 50 16 40 17 30 a. (15 points) Solve for the payoffs for the firms for the prisoner’s dilemma game. Then Place the payoffs in the box on the next page.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Firm A Cooperate Cheat Cooperate Firm B Cheat b. (5 points) What is the Dominant Strategy Equilibrium of this game.
Background image of page 2
15.Average total cost equals a. change in total costs divided by quantity produced. b. change in total costs divided by change in quantity produced. c. (fixed costs + variable costs) divided by quantity produced. d. (fixed costs + variable costs) divided by change in quantity produced. 16. Which of the following statements about costs is correct? a. When marginal cost is less than average total cost, average total cost is rising.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

MoreReviewQuestions - More Review Questions Question 7 (20...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online