Table: Firm A’s and Firm B’s Pricing Strategy Payoff Matrix Firm B’s Pricing Strategy Firm A’s Pricing Strategy High Low High $100, $100 $50, $150 Low $150, $50 $60, $60 The payoff matrix above gives the profits associated with the strategic choices of two firms in an oligopolistic industry. The first entry in each cell is the profit to Firm A and the second to Firm B. If each firm simultaneously chooses its pricing strategy without collusion, Firm A’s and Firm B’s profits would be which of the following?

Table: Costs and Benefits of Cleaning Up Pollution Levels of Clean Up Total Cost of Clean Up ($) Total Benefit of Clean Up ($) 0 0 0 1 7 45 2 37 80 3 92 105 4 172 125 5 272 140 The table above shows the total cost and the total benefit of cleaning up pollution in a community.Which of the following cleanup levels is socially optimal?

Assume that, for a perfectly competitive firm, marginal cost equals average variable cost at $10, marginal cost equals average total cost at $15, and marginal revenue equals marginal cost at $12. On the basis of this information, the firm should

Assume that barber shops operate in perfectly competitive product and factor markets. Which of the following will happen to working barbers if the price of haircuts decreases?

Within the range of market demand, which of the following is consistent with the conditions of a natural monopoly?

OfficeClips is a typical firm that produces and sells paper clips in a perfectly competitive market. OfficeClips is currently earning a positive economic profit. In the long run, what will happen to the firm’s economic profit, the market price, and the market quantity? Table: OfficeClips’s Profit, Market Price, and Market Quantity Firm’s Profit Market Price Market Quantity A No change Decrease Increase B No change Increase Decrease C No change Increase Decrease D Decrease Decrease Decrease E Decrease Decrease Increase

Table: Alpha and Beta Profits Matrix Beta Alpha Price High Price Low Price High $150, $150 $120, $180 Price Low $180, $120 $125, $125 The payoff matrix shows the profits of two firms, Alpha and Beta, that compete against each other. Each firm must decide to set a high or low price. The first numeric entry shows Alpha’s profits; the second entry shows Beta’s profits. Each firm is aware of the information in this payoff matrix.Given that each firm is aware of the information in the payoff matrix, which of the following is true?

In the short run in perfect competition, the industry’s demand curve and a firm’s demand curve have which of the following slopes?

Assume paper clips are produced in a perfectly competitive industry that is currently in long-run equilibrium. One firm in the industry develops a new production method that reduces its variable cost of production. If its competitors are unable to copy this new method, what will happen to this firm’s output and profit in the short run?

The figure shows a graph of 3 lines in a plane. The horizontal axis is labeled “Quantity of Labor,” and the numbers 0 through 90, in increments of 10, are indicated. The vertical axis is labeled “Wage Rate,” and the values 0, $24, $32, $40, $48, $64, and $72 are indicated. The three lines are labeled M F C, S, and M R P. The M F C line begins at approximate coordinates 5 comma $20 and moves upward and to the right. It passes through coordinates 10 comma $24; 40 comma $48; and 70 comma $72. The S line begins at approximate coordinates 5 comma $10 and moves upward and to the right. It passes through coordinates 20 comma $16; 40 comma $24; and 60 comma $32. The M R P line begins at approximate coordinates 5 comma $76, moves downward and to the right, passes through coordinates 10 comma $72, and intersects the M F C line at coordinates 40 comma $48. It then intersects the S line at coordinates 60 comma $32, passes through coordinates 70 comma $24, and ends slightly above the horizontal axis at quantity of labor 90. FishNets hires workers from the labor market depicted in the provided graph. The government imposes a binding minimum wage in the labor market. What is the binding minimum wage that would cause FishNets to hire the same number of workers as a perfectly competitive labor market?