End Of Semester Exam Study Guide (Plato Edmentum) 2023/2024

End Of Semester Exam Study Guide (Plato Edmentum) 2023/2024 In a game, a Nash equilibrium is reached only if the players: A) have no best response for the choices made by other players. B) understand the game and the payoffs associated with each strategy. C) use backward induction method to develop their strategies. D) follow a mixed strategy. - CORRECT ANSWER-B) understand the game and the payoffs associated with each strategy. A profit maximizing monopoly's price is A) less than the price that would prevail if the industry was perfectly competitive. B) not consistently related to price that would prevail if the market was perfectly competitive. C) greater than the price that would prevail if the industry was perfectly competitive. D) the same as the price that would prevail if the industry was perfectly competitive. - CORRECT ANSWER-C) greater than the price that would prevail if the industry was perfectly competitive. The incidence of a tax depends on whether the government collects the tax from buyers or sellers. True or False - CORRECT ANSWER-False Some superstar athletes in the sports industry earn very high levels of income relative to other occupations, and over time the wage differential has been increasing. What could have caused this? A) The supply of star athletes has decreased. B) The market power of athletes' unions has increased. C) Technological advances such as cable television has increased the demand for sports entertainment. D) The supply of star athletes has increased due to college athletic programs. - CORRECT ANSWER-C) Technological advances such as cable television has increased the demand for sports entertainment. If in the market for peaches the supply curve has shifted to the left, A) the quantity of peaches supplied has increased. B) the supply of peaches has decreased.