The prisoners' dilemma is
A) an example of a duopoly game.
B) a theory about why firms break the law.
C) competition that can occur among firms in monopolistic competition.
D) an example of the monopolist charging high prices.
E) an example of a game that does not have a Nash equilibrium.
A
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When Ferrari sells stock to the public in its IPO, it will do so through the New York Stock Exchange. People who buy the shares will
A) do so in the indirect finance market. B) own part of the company. C) be promised to be repaid their investment plus interest. D) All of the above are true.
Suppose all firms in an industry have a production technology described by the production function 
. The cost of labor is 2 and the cost of capital is 4, and each firm faces a recurring fixed cost of 300.
a. Derive the long run cost and average cost functions for each firm. (Hint: Given the shapes of the isoquants implied by the production function, you should be able to do this without solving a calculus problem.)
b. What is the long run equilibrium output price?
c. How much does each firm produce in long run equilibrium?
d. Suppose market demand is given by 
. How many firms are in the industry in long run equilibrium?
e. Suppose the industry is currently in long run equilibrium. Derive the short run cost function for each firm (assuming labor is variable but capital is fixed in the short run).
f. Now suppose that demand falls to 
. What happens to output price in the short run? What happens to price and the number of firms in the long run?
What will be an ideal response?