The total output of soap in Sally’s soap shop increases from 20 per hour to 30 per hour as she hires the second worker. The price of each bar of soap is $2. The

A change in the wage rate

Suppose OPEC has only two producers, country “S” and country “E”. Country “S” has far more oil reserves and is the lower-cost producer compared to country “E”. The payoff matrix the table shows the profits earned per day by each country. “Low output” corresponds to producing the OPEC assigned quota and “high output” corresponds to producing the maximum capacity beyond the assigned quota.What is the Nash equilibrium in this game?

The table shows the payoff matrix for Firm W and Firm T from every combination of pricing strategies for a popular gaming system. At the start of the game each firm charges a low price and each earns a profit of $7,000. Is the current strategy in which each firm charges the low price and earns a profit of $7,000 a Nash equilibrium? If not, why and what is the Nash equilibrium?

If the supply of labor increases, then the equilibrium wage rate ________ and the equilibrium quantity of labor ________.

A monopolistically competitive industry that earns economic profits in the short run will            

The payoff matrix shown above assumes that Pretty Petunia’s (PP) and Fabulous Flowers (FF) must decide whether to offer same-day delivery for their products. The matrix shows how much profit each firm will earn if it does or does not offer same-day delivery. The amount of profit for one firm depends on whether the other firm offers same-day delivery.  Which of the following statements is true?

A monopoly finds that at its present level of output and sales, marginal revenue equals $5 and marginal cost is $4.10. Which of the following will maximize profit?        

Suppose that eight workers can manufacture 70 radios per day and that nine workers can manufacture 90 radios per day. If radios can be sold for $20 each, the value of marginal product of the ninth worker is

A perfectly competitive firm has to charge the same price as every other firm in the market. Therefore, the firm