View the step-by-step solution to:

Question 2 1pts In the Spring, James likes to spend afternoons at the park.What is his opportunity cost of him doing this?

Question 2

1 pts

In the Spring, James likes to spend afternoons at the park. What is his opportunity cost of him doing this?


No opportunity cost since he is doing an activity he enjoys


The opportunity cost is the value of the next best alternative of his time - how he would spend his afternoons if he wasn't at the park


The opportunity cost is the value of the sum of all other things he could do instead of going to the park

 

Flag this Question

Question 3

1 pts

Suppose that two players are playing the following game. Player A can choose either Top or Bottom, and Player B can choose either Left or Right. The payoffs are given in the following table where the number on the left is the payoff to Player A, and the number on the right is the payoff to Player B.


Does Player A have a dominant strategy? If so, what is it?


Top is a dominant strategy for Player A


Bottom is a dominant strategy for Player A


Both of the above


None of the above

 

Flag this Question

Question 4

1 pts

Does Player B have a dominant strategy? If so, what is it?


Left is a dominant strategy for Player B


Right is a dominant strategy for Player B


Both of the above


None of the above

 

Flag this Question

Question 5

1 pts

For the next four questions, you'll be asked whether a strategy combination is a Nash equilibrium or not. Player A plays Top and Player B plays Left


This is a Nash equilibrium


This is NOT a Nash equilibrium

 

Flag this Question

Question 6

1 pts

Player A plays Bottom and Player B plays Left


This is a Nash equilibrium


This is NOT a Nash equilibrium

 

Flag this Question

Question 7

1 pts

Player A plays Top and Player B plays Right


This is a Nash equilibrium


This is NOT a Nash equilibrium

 

Flag this Question

Question 8

1 pts

Player A plays Bottom and Player B plays Right


This is a Nash equilibrium


This is NOT a Nash equilibrium

 

Flag this Question

Question 9

2 pts

If each player plays her maximin strategy, what will be the outcome of the game?


Player A plays Top and Player B plays Left


Player A plays Bottom and Player B plays Left


Player A plays Top and Player B plays Right


Player A plays Bottom and Player B plays Right

 

Flag this Question

Question 10

2 pts

Now suppose the same game is played with the exception that Player A moves first and Player B moves second. Using the backward induction method discussed in the online class notes, what will be the outcome of the game?


Player A plays Top and Player B plays Left


Player A plays Bottom and Player B plays Left


Player A plays Top and Player B plays Right


Player A plays Bottom and Player B plays Right

 

Flag this Question

Question 11

2 pts

For the next five questions, consider a monopolist. Suppose the monopolist faces the following demand curve: P = 140 - 6Q. Marginal cost of production is constant and equal to $20, and there are no fixed costs. What is the monopolist's profit maximizing level of output?



Q = 22


Q = 15


Q = 10


Q = 20


Q = 5


none of the above

 

Flag this Question

Question 12

2 pts

What price will the profit maximizing monopolist charge?


P = $10


P = $20


P = $40


P = $80


P = $140


none of the above

 

Flag this Question

Question 13

2 pts

How much profit will the monopolist make if she maximizes her profit?


Profit = $900


Profit = $600


Profit = $800


Profit = $200


Profit = $400


none of the above

 

Flag this Question

Question 14

2 pts

What is the value of consumer surplus?


CS = $1400


CS = $900


CS = $600


CS = $300


CS = $200


none of the above

 

Flag this Question

Question 15

2 pts

What is the value of the deadweight loss created by this monopoly?


DWL = $200


DWL = $400


DWL = $600


DWL = $800


DWL = $1000


none of the above

 

Flag this Question

Question 16

2 pts

These next five problems consider tax incidence. Suppose the market supply and demand for guitars in Happy Valley are given by:

Demand: P = 1000 - 0.25Q

Supply: P = 200 + Q

What is the equilibrium price and quantity of the product?


P* = 840, Q* = 640


P* = 733.25, Q* = 1067


P* = 760, Q* = 960


P* = 800, Q* = 600

 

Flag this Question

Question 17

2 pts

What is the price elasticity of demand at the equilibrium price?


Elasticity = -2


Elasticity = -3.333


Elasticity = -5.25


Elasticity = -0.5


none of the above

 

Flag this Question

Question 18

2 pts

For the next three questions, assume there is $10 per unit tax levied on the consumers of guitars. What price will buyers pay after the tax is imposed?


$850


$842


$830


$855


none of the above

 

Flag this Question

Question 19

2 pts

What is the quantity of the good that will be sold after the tax is imposed?


630


640


626


632


none of the above

 

Flag this Question

Question 20

2 pts

What is the deadweight loss created by the tax?


DWL = $80


DWL = $8


DWL = $10


DWL = $64


none of the above

 

Flag this Question

Question 21

1 pts

NebraskaVirginiaWheat1215Cotton610

For the next nine questions, refer to the table above. Nebraska and Virginia each have 100 acres of farmland. The table gives the hypothetical figures for yield per acre in the two states. Who has the absolute advantage in the production of wheat?


Nebraska


Virginia


Both of the above


None of the above

 

Flag this Question

Question 22

1 pts

Who has the absolute advantage in the production of cotton?


Nebraska


Virginia


Both of the above


None of the above

 

Flag this Question

Question 23

1 pts

Who has the comparative advantage in the production of wheat?


Nebraska


Virginia


Both of the above


None of the above

 

Flag this Question

Question 24

1 pts

Who has the comparative advantage in the production of cotton?


Nebraska


Virginia


Both of the above


None of the above

 

Flag this Question

Question 25

1 pts

For the next four problems, you will find actual points on the combined PPC of the two states. You will be given a value of one good, and you must calculate the maximum amount of the other good that the two states could produce working together.

WheatCotton36020013001500

 

360 Wheat:


1160 Cotton


1280 Cotton


1420 Cotton


1600 Cotton


None of the above

 

Flag this Question

Question 26

1 pts

200 Cotton:


1400 Wheat


1600 Wheat


1800 Wheat


2000 Wheat


None of the above

 

Flag this Question

Question 27

1 pts

1300 Cotton:


500 Wheat


600 Wheat


700 Wheat


800 Wheat


None of the above

 

Flag this Question

Question 28

1 pts

1500 Wheat:


500 Cotton


600 Cotton


700 Cotton


800 Cotton


None of the above

 

Flag this Question

Question 29

1 pts

In Virginia, what is the marginal rate of transformation between wheat and cotton? (Assume wheat is graphed on the vertical axis.)


-0.5


-1


-1.5


-2

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question