Refer to Figure 8.1. If Charla and Mirna agree to pay each other $350 to install the pollution-control device on their heating systems, the payoffs in the upper-right and lower-left cells in the payoff matrix would become

Sweet Husks is a perfectly competitive corn farm. Currently, the expected price of an ear of corn is $0.20 and, at its current production level, Sweet Husks has a marginal cost of $.20 per ear. Which of the following is true regarding Sweet Husks?

A) To maximize expected profit, Sweet Husks should increase production. B) To maximize expected profit, Sweet Husks should decrease production. C) To maximize expected profit, Sweet Husks should double production. D) Sweet Husks is maximizing expected profit.

Use the figure below to answer the following question.What area represents producer surplus after the government imposes the excise tax on the market?

A. triangle $21a$13 B. square $13ac$9 C. triangle abc D. triangle $1c$9