Supply and Demand and Correct Answer
* Question 1
0 out of 1 points | | | Duopolists A and B face the following demand curves: QA = 120 2PA + PB and QB = 120 2PB + PA. If both firms have zero marginal cost and they form a cartel, what is the profit-maximizing price and quantity?Answer | | | | | Correct Answer: | a. P = 60, Q = 120 | | | | | * Question 2
1 out of 1 points | | | Total surplus in a market is a measure of:Answer | | | | | Correct Answer: | c. social welfare created by the market | | | | | * Question 3
1 out of 1 points | | | The long-run average cost curve slopes downward if there are:Answer | | | | | Correct Answer: | e. economies of scale | | | | | * Question 4
1 out of 1 points | | | Average fixed cost is equal to the:Answer | | | | | Correct Answer: | d. difference between average total cost and average variable cost | | | | | * Question 5
1 out of 1 points | | | In a two-player game in which each player has four options, how many outcomes can there be?Answer | | | | | Correct Answer: | e. 16 | | | | | * Question 6
1 out of 1 points | | | Fred loves tomatoes. He makes soups, sauces, and stews with them; stuffs them; roasts them; and grills them. Fred has discovered a farmer’s market where the price of a bushel of tomatoes depends on how many bushels are purchased. The first bushel is $15; the second, $12; the third, $10; and four or more, $9.00 each. Fred has $82 to spend on tomatoes and on “all other things” during the coming week. All other things sell for $1 per unit. Assume that all other things are measured on the vertical axis. What is the horizontal intercept of Fred’s budget constraint?Answer | | | | | Correct Answer: | d. 8 | | | | | * Question 7
1 out of 1 points | | | Consider the indifference map below. The price of Y is $5. Two points on a demand curve for good X are:
Answer | | | | | Correct
0 out of 1 points | | | Duopolists A and B face the following demand curves: QA = 120 2PA + PB and QB = 120 2PB + PA. If both firms have zero marginal cost and they form a cartel, what is the profit-maximizing price and quantity?Answer | | | | | Correct Answer: | a. P = 60, Q = 120 | | | | | * Question 2
1 out of 1 points | | | Total surplus in a market is a measure of:Answer | | | | | Correct Answer: | c. social welfare created by the market | | | | | * Question 3
1 out of 1 points | | | The long-run average cost curve slopes downward if there are:Answer | | | | | Correct Answer: | e. economies of scale | | | | | * Question 4
1 out of 1 points | | | Average fixed cost is equal to the:Answer | | | | | Correct Answer: | d. difference between average total cost and average variable cost | | | | | * Question 5
1 out of 1 points | | | In a two-player game in which each player has four options, how many outcomes can there be?Answer | | | | | Correct Answer: | e. 16 | | | | | * Question 6
1 out of 1 points | | | Fred loves tomatoes. He makes soups, sauces, and stews with them; stuffs them; roasts them; and grills them. Fred has discovered a farmer’s market where the price of a bushel of tomatoes depends on how many bushels are purchased. The first bushel is $15; the second, $12; the third, $10; and four or more, $9.00 each. Fred has $82 to spend on tomatoes and on “all other things” during the coming week. All other things sell for $1 per unit. Assume that all other things are measured on the vertical axis. What is the horizontal intercept of Fred’s budget constraint?Answer | | | | | Correct Answer: | d. 8 | | | | | * Question 7
1 out of 1 points | | | Consider the indifference map below. The price of Y is $5. Two points on a demand curve for good X are:
Answer | | | | | Correct