The difference between a Nash equilibrium and a subgame-perfect equilibrium is:
a. the former requires rational play both on and off the equilibrium path but the latter requires rational play only on the equilibrium path.
b. the former requires rational play only on the equilibrium path but the latter requires rational play both on and off the equilibrium path.
c. Nash equilibria are a subset of the subgame-perfect equilibria.
d. nothing; they are synonyms.
b
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If a firm has a total fixed cost of $75 and an average variable cost of $35 for producing 10 units of output, the average total cost would be:
a. $425. b. $42.50. c. $110. d. $350.
A firm's marginal cost is $82, its average total cost is $50, and its output is 800 units. Its total cost of producing 801 units is
A) less than $40,000. B) between $40,000 and $40,050. C) between $40,050 and $40,080. D) greater than $40,080.