A driver knows their own accident risk better than the insurer before buying a policy — this is [blank1]. After buying a no-deductible policy, that same driver starts driving recklessly — this is [blank2]. The first problem involves hidden information that exists [blank3] signing; the second involves hidden actions that occur [blank4] signing.

  The figure above shows the market for mineral water. If the efficient quantity of water is produced, the producer surplus is $[value]. Enter a value. Do not include the “$”

                                                                   Firm 1 ​ ​ Sells Gives away ​ Sells 1: $182: $18 1: $20.52: $16.5 Firm 2 ​ ​ ​ ​ Gives away 1: $16.52: $20.5 1: $162: $16 Two software firms have developed an identical new software application. They are debating whether to give the new app away free and then sell add-ons or sell the application at $30 a copy. The payoff matrix is above and the payoffs are profits in millions of dollars. The Nash equilibrium in this game is Firm 1 [value1] and Firm 2 [value2] the software application.

The opportunity cost of attending college includes the cost of

When a firm experiences economies of scale, its [value1] cost curve slopes [value2] as output increases.

If as output increases average product increases, then Choose all that apply.

The figure above shows the market for milk. If the efficient quantity of milk is produced, the consumer surplus is $[value]. Enter a value. Do not include the “$”.

The shutdown point occurs at the level of output for which the [value1] curve is [value2].

                                                                   Firm 1 ​ ​ Sells Gives away ​ Sells 1: $12: $1 1: $32: $4 Firm 2 ​ ​ ​ ​ Gives away 1: $42: $5 1: $22: $2 Two software firms have developed an identical new software application. They are debating whether to give the new app away free and then sell add-ons or sell the application at $30 a copy. The payoff matrix is above and the payoffs are profits in millions of dollars. The Nash equilibrium in this game is Firm 1 [value1] and Firm 2 [value2] the software application.

The primary characteristics of game theory include Choose all that apply.