Game theory can be used for studying which of the following types of market structure?
A) monopoly
B) monopolistic competition
C) oligopoly
D) perfect competition
Ques. 2If there is surplus of a good, then the quantity demanded ________ the quantity supplied and the price will ________.
A) is less than; rise
B) is less than; fall
C) is greater than; rise
D) is greater than; fall
Ques. 3A perfectly competitive firm shuts down if the price of its product is
A) greater than its minimum average variable cost.
B) less than its minimum average variable cost.
C) greater than its maximum variable cost.
D) less than its minimum total cost.
Ques. 4The table above gives the demand for a monopolist's output. What is the marginal revenue when output is increased from 2 to 3 units?
A) 18
B) 4
C) 7
D) 6
Ques. 5Suppose that the interest rate is greater than the equilibrium interest rate. Which of the following occurs?
I. There is an excess quantity of money.
II. The quantity of money automatically increases.
III. The interest rate falls.
A) I
B) I and II
C) I and III
D) I, II and III
Ques. 6A scatter diagram with the price of peanut butter on the vertical axis and the price of jelly on the horizontal axis shows a negative relationship.
If the price of jelly was placed on the vertical axis and the price of peanut butter was placed on the horizontal axis, the relationship would be a A) negative relationship, also called a direct relationship.
B) negative relationship, also called an inverse relationship.
C) positive relationship, also called a direct relationship.
D) positive relationship, also called an inverse relationship.
Ques. 7The government imposes a sales tax on hot dogs. The tax would be paid entirely by the hot dog buyers if the
A) supply is perfectly elastic.
B) supply is perfectly inelastic.
C) demand is perfectly elastic.
D) None of the above answers is correct.
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