A perfectly-competitive, profit-maximizing firm's total cost equation is TC = 1,500 + 5Q + 0.0025Q2. The market-clearing price is $25. The firm's profit is:

A) $27, 370. B) $33,333. C) $38,500. D) $42, 875. E) None of the above. A) $27, 370. B) $33,333. C) $38,500. D) $42, 875. E) None of the above.

Exam 9: Perfect Competition and Monopoly

The demand for the output of a multi-firm industry is Q_T = 50 !2.5P. The total cost of production of an individual profit-maximizing firm in this industry is TC₁= 4Q₁. The reaction function of firm 1 is:

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Question 1

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Suppose that there are 9 firms in an industry producing an identical product are Cournot competitors. If the industry is in Cournot-Nash equilibrium, allocative inefficiency as a percentage of allocative inefficiency under monopoly is:

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Question 2

Correct Answer:

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The demand for the output of a multi-firm industry is Q_T = 50 !2.5P. The total cost of production of an individual profit-maximizing firm in this industry is TC₁= 4Q₁. If this industry is comprised of 20 firms, the Cournot-Nash equilibrium output for firm 1 is:

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Question 3

Correct Answer:

Verified

The demand for the output of a multi-firm industry is Q_T = 50 !2.5P. The total cost of production of an individual profit-maximizing firm in this industry is TC₁= 4Q₁. If this industry is comprised of 3 firms, the Cournot-Nash equilibrium output for firm 1 is:

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Question 4

According to the standard model of perfect competition, a firm should shut down if:

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Question 5

Game theory is of limited usefulness in explaining:

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Question 6

The demand for the output of a multi-firm industry is Q_T = 10 !P. The total cost of production of an individual profit-maximizing firm in this industry is TC₁= 2Q₁. The reaction function of firm 1 is:

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Question 7

The demand for the output of a multi-firm industry is Q_T = 50 !2.5P. The total cost of production of an individual profit-maximizing firm in this industry is TC₁= 4Q₁. If this industry is comprised of 4 firms, the Cournot-Nash equilibrium output for firm 1 is:

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Question 8

The demand for the output of a multi-firm industry is Q_T = 50 !2.5P. The total cost of production of an individual profit-maximizing firm in this industry is TC₁= 4Q₁. If this industry is comprised of 19 firms, firm 1's profit is about:

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Question 9

According to the standard model of monopoly, a profit-maximizing firm will produce at the output level where:

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Question 10

A perfectly-competitive, profit-maximizing firm's total cost equation is TC = 1,500 + 5Q + 0.0025Q². The market-clearing price is $25. The firm's profit is:

(Multiple Choice)

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Question 11

Suppose that there are 4 firms in an industry producing an identical product are Cournot competitors. If the industry is in Cournot-Nash equilibrium, allocative inefficiency as a percentage of allocative inefficiency under monopoly is:

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Question 12

At a Cournot-Nash equilibrium, industry profits are:

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Question 13

According to the standard model of perfect competition, a firm in long-run competitive equilibrium will product at the output level where:

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Question 14

Which of the following expression gives an estimate of allocative inefficiency in an industry consisting of T Cournot competitors as a percentage of allocative inefficiency under monopoly?

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Question 15

-Consider Figure 9.1. The short-run profit-maximizing output level is:

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Question 16

The demand for the output of a multi-firm industry is Q_T = 50 !2.5P. The total cost of production of an individual profit-maximizing firm in this industry is TC₁= 4Q₁. If this industry is comprised of 3 firms, firm 1's profit is about:

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Question 17

According to the Cournot model:

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Question 18

According to the standard model of perfect competition, a profit-maximizing firm will produce where:

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Question 19

-Consider Figure 9.2, which depicts a profit-maximizing monopolist. The profit- maximizing price is:

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Question 20

Showing 1 - 20 of 33

The demand for the output of a multi-firm industry is Q_T = 50 !2.5P. The total cost of production of an individual profit-maximizing firm in this industry is TC₁= 4Q₁. The reaction function of firm 1 is:

Suppose that there are 9 firms in an industry producing an identical product are Cournot competitors. If the industry is in Cournot-Nash equilibrium, allocative inefficiency as a percentage of allocative inefficiency under monopoly is:

The demand for the output of a multi-firm industry is Q_T = 50 !2.5P. The total cost of production of an individual profit-maximizing firm in this industry is TC₁= 4Q₁. If this industry is comprised of 20 firms, the Cournot-Nash equilibrium output for firm 1 is:

The demand for the output of a multi-firm industry is Q_T = 50 !2.5P. The total cost of production of an individual profit-maximizing firm in this industry is TC₁= 4Q₁. If this industry is comprised of 3 firms, the Cournot-Nash equilibrium output for firm 1 is:

According to the standard model of perfect competition, a firm should shut down if:

Game theory is of limited usefulness in explaining:

The demand for the output of a multi-firm industry is Q_T = 10 !P. The total cost of production of an individual profit-maximizing firm in this industry is TC₁= 2Q₁. The reaction function of firm 1 is:

The demand for the output of a multi-firm industry is Q_T = 50 !2.5P. The total cost of production of an individual profit-maximizing firm in this industry is TC₁= 4Q₁. If this industry is comprised of 4 firms, the Cournot-Nash equilibrium output for firm 1 is:

The demand for the output of a multi-firm industry is Q_T = 50 !2.5P. The total cost of production of an individual profit-maximizing firm in this industry is TC₁= 4Q₁. If this industry is comprised of 19 firms, firm 1's profit is about:

According to the standard model of monopoly, a profit-maximizing firm will produce at the output level where:

A perfectly-competitive, profit-maximizing firm's total cost equation is TC = 1,500 + 5Q + 0.0025Q². The market-clearing price is $25. The firm's profit is:

Suppose that there are 4 firms in an industry producing an identical product are Cournot competitors. If the industry is in Cournot-Nash equilibrium, allocative inefficiency as a percentage of allocative inefficiency under monopoly is:

At a Cournot-Nash equilibrium, industry profits are:

According to the standard model of perfect competition, a firm in long-run competitive equilibrium will product at the output level where:

Which of the following expression gives an estimate of allocative inefficiency in an industry consisting of T Cournot competitors as a percentage of allocative inefficiency under monopoly?

-Consider Figure 9.1. The short-run profit-maximizing output level is:

The demand for the output of a multi-firm industry is Q_T = 50 !2.5P. The total cost of production of an individual profit-maximizing firm in this industry is TC₁= 4Q₁. If this industry is comprised of 3 firms, firm 1's profit is about:

According to the Cournot model:

According to the standard model of perfect competition, a profit-maximizing firm will produce where:

-Consider Figure 9.2, which depicts a profit-maximizing monopolist. The profit- maximizing price is:

Introduction to Game Theory

Noncooperative, One-Time, Static Games

Focal-Point and Evolutionary Equilibria

Infinitely-Repeated, Static Games

Finitely-Repeated, Static Games

Mixing Pure Strategies

Static Games With Continuous Strategies

Imperfect Competition

Strategic Trade Policy

Dynamic Games With Complete

Bargaining

Pure Strategies With Uncertain Payoffs

Torts and Contracts

Auctions

Dynamic Games With Incomplete Information

Filters

Exam 9: Perfect Competition and Monopoly

The demand for the output of a multi-firm industry is QT = 50 !2.5P. The total cost of production of an individual profit-maximizing firm in this industry is TC1= 4Q1. The reaction function of firm 1 is:

Suppose that there are 9 firms in an industry producing an identical product are Cournot competitors. If the industry is in Cournot-Nash equilibrium, allocative inefficiency as a percentage of allocative inefficiency under monopoly is:

The demand for the output of a multi-firm industry is QT = 50 !2.5P. The total cost of production of an individual profit-maximizing firm in this industry is TC1= 4Q1. If this industry is comprised of 20 firms, the Cournot-Nash equilibrium output for firm 1 is:

The demand for the output of a multi-firm industry is QT = 50 !2.5P. The total cost of production of an individual profit-maximizing firm in this industry is TC1= 4Q1. If this industry is comprised of 3 firms, the Cournot-Nash equilibrium output for firm 1 is:

According to the standard model of perfect competition, a firm should shut down if:

Game theory is of limited usefulness in explaining:

The demand for the output of a multi-firm industry is QT = 10 !P. The total cost of production of an individual profit-maximizing firm in this industry is TC1= 2Q1. The reaction function of firm 1 is:

The demand for the output of a multi-firm industry is QT = 50 !2.5P. The total cost of production of an individual profit-maximizing firm in this industry is TC1= 4Q1. If this industry is comprised of 4 firms, the Cournot-Nash equilibrium output for firm 1 is:

The demand for the output of a multi-firm industry is QT = 50 !2.5P. The total cost of production of an individual profit-maximizing firm in this industry is TC1= 4Q1. If this industry is comprised of 19 firms, firm 1's profit is about:

According to the standard model of monopoly, a profit-maximizing firm will produce at the output level where:

A perfectly-competitive, profit-maximizing firm's total cost equation is TC = 1,500 + 5Q + 0.0025Q2. The market-clearing price is $25. The firm's profit is:

Suppose that there are 4 firms in an industry producing an identical product are Cournot competitors. If the industry is in Cournot-Nash equilibrium, allocative inefficiency as a percentage of allocative inefficiency under monopoly is:

At a Cournot-Nash equilibrium, industry profits are:

According to the standard model of perfect competition, a firm in long-run competitive equilibrium will product at the output level where:

Which of the following expression gives an estimate of allocative inefficiency in an industry consisting of T Cournot competitors as a percentage of allocative inefficiency under monopoly?

-Consider Figure 9.1. The short-run profit-maximizing output level is:

The demand for the output of a multi-firm industry is QT = 50 !2.5P. The total cost of production of an individual profit-maximizing firm in this industry is TC1= 4Q1. If this industry is comprised of 3 firms, firm 1's profit is about:

According to the Cournot model:

According to the standard model of perfect competition, a profit-maximizing firm will produce where:

-Consider Figure 9.2, which depicts a profit-maximizing monopolist. The profit- maximizing price is:

Introduction to Game Theory

Noncooperative, One-Time, Static Games

Focal-Point and Evolutionary Equilibria

Infinitely-Repeated, Static Games

Finitely-Repeated, Static Games

Mixing Pure Strategies

Static Games With Continuous Strategies

Imperfect Competition

Strategic Trade Policy

Dynamic Games With Complete

Bargaining

Pure Strategies With Uncertain Payoffs

Torts and Contracts

Auctions

Dynamic Games With Incomplete Information

Filters

The demand for the output of a multi-firm industry is Q_T = 50 !2.5P. The total cost of production of an individual profit-maximizing firm in this industry is TC₁= 4Q₁. The reaction function of firm 1 is:

The demand for the output of a multi-firm industry is Q_T = 50 !2.5P. The total cost of production of an individual profit-maximizing firm in this industry is TC₁= 4Q₁. If this industry is comprised of 20 firms, the Cournot-Nash equilibrium output for firm 1 is:

The demand for the output of a multi-firm industry is Q_T = 50 !2.5P. The total cost of production of an individual profit-maximizing firm in this industry is TC₁= 4Q₁. If this industry is comprised of 3 firms, the Cournot-Nash equilibrium output for firm 1 is:

The demand for the output of a multi-firm industry is Q_T = 10 !P. The total cost of production of an individual profit-maximizing firm in this industry is TC₁= 2Q₁. The reaction function of firm 1 is:

The demand for the output of a multi-firm industry is Q_T = 50 !2.5P. The total cost of production of an individual profit-maximizing firm in this industry is TC₁= 4Q₁. If this industry is comprised of 4 firms, the Cournot-Nash equilibrium output for firm 1 is:

The demand for the output of a multi-firm industry is Q_T = 50 !2.5P. The total cost of production of an individual profit-maximizing firm in this industry is TC₁= 4Q₁. If this industry is comprised of 19 firms, firm 1's profit is about:

A perfectly-competitive, profit-maximizing firm's total cost equation is TC = 1,500 + 5Q + 0.0025Q². The market-clearing price is $25. The firm's profit is:

The demand for the output of a multi-firm industry is Q_T = 50 !2.5P. The total cost of production of an individual profit-maximizing firm in this industry is TC₁= 4Q₁. If this industry is comprised of 3 firms, firm 1's profit is about: