For collusion to make sense, the payoff matrix must be a
a. positive-sum game.
b. zero-sum game.
c. negative-sum game.
d. negative-positive-sum game.
a
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Raiman's Shoe Repair also produces custom-made shoes. When Mr. Raiman produces 12 pair a week, the MC of the twelfth pair is $84, and the MR of that unit is $70 . What would you advise Mr. Raiman to do?
a. shut down b. produce more custom-made shoes c. stay at 12 pairs a week d. produce fewer custom-made shoes e. decrease price
If pizza used to be produced in a competitive price-taker market, and now the pizza market has become a monopoly, we can expect
a. less pizza to be sold at a higher price. b. more pizza to be sold at a higher price. c. less pizza to be sold at a lower price. d. more pizza to be sold at a lower price. e. the same amount of pizza to be sold at the same price.