1) When a second firm enters a monopolist's market, the initial demand curve facing the monopolist will:

2) Which of the following is NOT a characteristic of a monopolistically competitive market?

3) Suppose you operate in a monopolistically competitive market. If you sell your good at a price of $10 and your average cost of production is $8:



4) As firms enter a monopolistically competitive market in the long run:



5) Figure 11.1 depicts demand and costs for a monopolistically competitive firm. At the profit maximizing output level,



6) If Figure 11.1 depicts the current situation for a monopolistically competitive firm, then in the long run we expect:



7) Figure 11.2 shows demand and costs for a monopolistically competitive firm. At the profit maximizing output level, the firm's profit is:



8) Figure 11.2 shows demand and costs for a monopolistically competitive firm. In the long-run we expect:



9) Figure 11.2 shows demand and costs for a monopolistically competitive firm. At the profit maximizing output level,



10) Figure 11.2 shows demand and costs for a monopolistically competitive firm. In the long-run we expect:



11) Figure 11.2 shows demand and costs for a monopolistically competitive firm. In the long-run we expect:



12) If you were thinking of entering the ice cream business, would you make a product that is just like one that is already being produced? Explain.



13) The four-firm concentration ratio for the market depicted in Table 12.1 is:



14) Suppose that there are five firms in a market, each controlling 20% of the market. The HHI would equal



15) Figure 12.1 shows the market for a successful price-fixing arrangement (cartel) between two identical firms . When the two firms act like one and charge the same price, the market price will be and each firm will produce and sell a quantity of .



16) Figure 12.1 shows a successful price-fixing arrangement (cartel) between two identical firms. When the two firms act like one and charge the same price, each firm will earn an economic profit of .



17) Figure 12.1 shows a successful price-fixing arrangement (cartel) between two identical firms. If the cartel collapses and the two firms compete against each other, the price will be and the quantity will be .



18) Consider Figure 12.3. Becky's dominant strategy is and David's dominant strategy is .



19) Consider Figure 12.3. Which of the following statements is true?



20) Consider Figure 12.3. David chooses to charge a low price:



21) Consider Figure 12.3. If Becky's payoff in the top rectangle were 300 instead of 90, the outcome of the game would be that:



22) Consider Figure 12.3. If David's payoff in the bottom rectangle were 40 instead of 70, the outcome of the game would be that:



23) Consider Figure 12.3. If Becky's payoff in the second rectangle from the top were 80 instead of 60, the outcome of the game would be that:



24) A Nash Equilibrium in a game is that outcome in which



25) The duopolists' dilemma refers to the situation in which



26) Joe and Steve are duopolists who each can follow two strategies: cooperate and jointly act like a monopolist, or don't cooperate (cheat) and act like duopolists. Their profits are as follows:



27) One method firms can use to solve the duopolists' dilemma is to engage in:



28) In Figure 12.6, airline Fly Smart is initially a secure monopoly between two cities X and Y at point M, serving 300 passengers per day at the profit maximizing price of $300 per ticket. What is Fly Smart's profit per ticket?



29) The natural monopoly in Figure 13.3 wants to produce:



30) Where it wants to produce the firm in Figure 13.3 would be:

A) making a zero economic profit.

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