Microeconomics Problem Set #9 Monopolistic Competition and Oligopoly Use the following information to answer questions 1 through 5: The graph below shows the demand curve and cost data for a firm...

Microeconomics question & answer assignment type (12 TOTAL QUESTIONS). This is NOT a research paper or anything like that, so there is no page minimum/limit. There is also no need for referencing or works cited.


Microeconomics Problem Set #9 Monopolistic Competition and Oligopoly Use the following information to answer questions 1 through 5: The graph below shows the demand curve and cost data for a firm operating in a monopolistic competition. 1. The blue line shows: a. Marginal Revenue b. Marginal Costs c. Demand Curve 2. The red line shows: a. Marginal Revenue b. Marginal Costs c. Demand Curve 3. The black line shows: a. Marginal Revenue b. Marginal Costs c. Demand Curve 4. The profit maximizing quantity for this firm is: a. 10 b. 15 c. 5 d. 30 5. What price will this firm set in order to maximize profits (or minimize losses)? a. 30 b. 35 c. 25 d. 10 6. The table below shows data for the production of Avocados for an individual firm in a monopolistic competition. Quantity of Avocados Price Total Costs MR 100 550 48500 450 200 500 93500 350 300 450 143500 250 400 400 198500 150 500 350 258500 50 600 300 323500 -50 Given this data, complete the table: Quantity of Avocados Total Revenue (TR) Profit Marginal Revenue (MR) Marginal Costs (MC) 100 - - 200 300 400 500 600 Use the following information to answer questions 7 through 9: The table below shows data for the production of Avocados for an individual firm operating in a monopolistic competition. Quantity of Avocados Price Total Costs 100 550 48500 200 500 93500 300 450 143500 400 400 198500 500 350 258500 600 300 323500 7. At what quantity are marginal revenues equal to marginal costs? 8. What is the profit maximizing quantity? NOTE: If there are two quantities with the same level of profits, pick the larger of the two quantities! 9. What is the profit maximizing price? NOTE: If there are two quantities with the same level of profits, pick the larger of the two quantities! Use the following information to answer questions 10 through 12: Consider the following prisoner's dilemma with the payoff matrix (Numbers represents years in prison): Person B Confess Remain Silent Person A Confess A gets 25 B gets 25 A gets 5 B gets 40 Remain Silent A gets 40 B gets 5 A gets 10 B gets 10 10. What is the dominant strategy for player A? a. Remain silent. b. There is no dominant strategy. c. Confess. 11. What is the dominant strategy for player B? a. Remain silent. b. There is no dominant strategy. c. Confess. 12. What is the Nash Equilibrium (in pure strategy)? a. 25, 25 b. 40, 5 c. 10, 10 d. 5, 40 e. There is no Nash equilibrium.