Behavioral economics is economic analysis that:

(Figure: Four Supply Curves) A coffee shop opens next to an existing coffee shop. Which of these graphs shows the effect of this new coffee shop on the market supply of coffee?

Following the Rational Rule, the maximum economic surplus occurs when:

(Figure: Market) A quota of 25 units is placed on the market shown in the figure. The quota _____ the quantity sold in the market by _____ units.

(Scenario: Payoff Matrix for Two Computer Manufacturers) Use Scenario: Payoff Matrix for Two Computer Manufacturers. Dell and HP are the only two firms in the industry and can either compete or cooperate with each other. Their profits associated with different combinations of strategies are shown in the table. Dell has:Payoff Matrix for Two Computer ManufacturersHP cooperatesHP competesDell cooperatesHP’s profit: $120Dell’s profit: $100HP’s profit: $75Dell’s profit: $75Dell competesHP’s profit: $75Dell’s profit: $75HP’s profit: $50Dell’s profit: $50

(Table: Comparative Advantage for Maia and Juanita) The table provides data on how long it takes Maia and Juanita to mow the lawn and weed the flower beds.Maia’s opportunity cost for mowing the lawn is _____, and Juanita’s opportunity cost for mowing the lawn is _____.​Hours it takes to:Mow the lawnWeed the flower bedMaiaJuanita3412​​​

(Figure: Nike and Reebok Sales) Use Figure: Nike and Reebok Sales. Reebok and Nike must decide whether to have a sale or not, based on the potential economic profits shown in the table, with Nike first followed by Reebok in each cell. Which is TRUE?Nike and Reebok SalesNike has a saleNike does not have a saleReebok has a sale$5M, $5M$1M, $30MReebok does not have a sale$30M, $1M$20M, $20M

Samuel’s company’s financial situation is presented in the accompanying table.What is the price at Samuel’s company?Total CostTotal RevenueDirect Financial CostImplicit Opportunity CostQuantity$102,000$142,000$40,000$62,0007,100

What is price competition?

A Nash equilibrium can be identified on a payoff table when: