Econ

At the nash equilibrium how much profit will firm A earn?

$80,000

Which firms have a dominant strategy

A but not B

The incidence of a tax falls more heavily on

All of the above are correct

The buyers will bear a higher share of the tax burden than sellers if the demand is

D2 and the supply is S2

If an oligopoly does not cooperate and each firm chooses its own quantity, the industry will produce a quantity of output that is__ the competitive level and __the monopoly level

Less than, more than

Which firm's dominant strategy is to sell?

Neither firm A nor firm B

Which of the following would increase quantity supplied, decrease quantity demanded, and increase the price that consumers pay?

The imposition of a binding price floor

Which of the following would increase quantity supplied, increase quantity demanded, and decrease the price that consumers pay?

The repeal of a tax levied on producers

Suppose a tax is imposed on bananas. In which of the following cases will the tax cause the equilibrium quantity of bananas to shrink by the largest amount.

The response of buyers and sellers to a change in the price of bananas is strong.

When this game reaches a nash equilbrium , the value of trade flow benifts will be

United States $65 b and Farland $75 b

A $1 per unit tax levied on consumers of a good is equivalent

a $1 per unit tax levied on producers of the good

When a government imposes a binding price floor, it causes

a surplus of the good to develop

A price ceiling will be binding only if it is set

below the equilibrium price

Suppose that the demand for light bulbs is inelastic, and the supply of light bulbs is elastic. A tax of $2 per bulb levied on light bulbs will increase the price paid by buyers of light bulbs by

between $1 and $2

Suppose the demand for macaroni is inelastic, the supply of macaroni is elastic, the demand for cigs is inelastic and the supply of cigs elastic. If a tax were levied on the sellers of both these commodities, we would expect that the burden of

both taxes would fall more heavily on the buyers than the sellers

If the two companies make their pricing decisions independently, then it is likely that QRS will

charge a low price regardless of whether ABC charges a high price or low price

An agreement among firms regarding price and/or production levels is called

collusion

If the government levies a $500 tax per car on sellers of cars, then the price received by sellers of cars would

decrease by less than $500

A tax on the sellers of coffee will increase the price of coffee paid by buyers,

decrease the effective price of coffee received by sellers, and decrease the equilibrium quantity of coffee

If the government removes a tax on a good, then the price paid by buyers

decrease, and the price price received by sellers will increase

A tax imposed on the sellers of a good will lower the

effective price received by sellers and lower the equilibrium quantity

The prisoners' Dilemma is a two-person game illustrating that

even if cooperation is better than the nash equilibrium, each person might have an incentive not to cooperate

If the government removes a tax on a good, then the quantity of the good sold will

increase

If the government levies a 1,000 tax per boat on sellers of boats, then the price paid by buyers of boats would

increase by less than 1,000

In a market with a binding price ceiling, an increase in the ceiling will__the quantity supplied,__the quantity demand, and reduce the__.

increase, decrease, shortage

If a 10 cent per pound tax is increased to 15 cents, the governments tax revenue

increases by less than 50 percent and may even decline

If a 2 cent per egg tax is increased to 3 cents, the deadweight loss of the tax

increases by more than 50 percent

As the number of firms in an oligopoly market

increases, the market approaches the competitive market outcome

An increase in the size of a tax is most likely to increase tax revenue in a market with

inelastic demand and inelastic supply

A tax burden falls more heavily on the side of the market that

is more inelastic

The tax burden will fall most heavily on sellers of the good when the demand curve

is relatively flat and the supply cure is relatively steep

When a tax is placed on the sellers of a product, buyers pay

more, and sellers receive less than they did before the tax

If the two companies make their pricing decisions independently, then it is likely that ABC will

none of the above are correct

The anti-trust laws aim to

prevent firms from acting in ways that reduce competition

A tax imposed on the sellers of a good will raise the

price paid by buyers and lower the equilibrium quantity

If a nonbonding price ceiling is imposed on a market then the

quantity sold in the market will stay the same

A tax imposed on the sellers of a good will

raise the price buyers pay and lower the effective price sellers receive

If a tax imposed on a market with inelastic supply and elastic demand, then

sellers will bear most of the burden of the tax

If a policymaker wants to raise revenue betaking goods while minimizing the deadweight loss, he should look for goods with s__ elasticities of demand and __ elasticities of supply.

small, small

Which of the following observations would be consistent with the imposition of a binding price ceiling on a market? After the price ceiling becomes effective,

smaller quantity of the good is bought and sold

When a good is taxed, the burden of the tax falls mainly on consumers if

supply is elastic and demand is inelastic

A minimum wage that is set above a market's equilibrium wage will result in an excess

supply of labor, that is unemployment

Suppose sellers of perfume are required to send $1.00 to the government for every bottle of perfume they sell. Further, suppose this tax causes the price paid by buyers of perfume to rise by $.60 bottle. Which of the following statements is correct?

the effective price received by sellers is $.40 per bottle less than it was before the tax.

If a price ceiling is not binding, then

the equilibrium price is below the price ceiling

A tax on a good has a deadweight loss if

the reduction in consumer and producer surplus is greater than the tax revenue

If a price ceiling is not binding, then

there will be no effect on the market price or quantity sold