Author Question: If a monopolistically competitive firm's marginal cost curve shifts upward, then the amount of ... (Read 59 times)

casperchen82 · **on:** Jun 29, 2018

If a monopolistically competitive firm's marginal cost curve shifts upward, then the amount of output it produces

A) increases.
B) stays the same.
C) decreases.
D) could increase, decrease, or stay the same but more information is needed.

Question 2

There are two can companies, American and National, which have entered into a collusive agreement. The payoff matrix of economic profits is above.

If National is able to cheat on the agreement but American complies with the agreement, what amount of economic profit is made by National? A) 2,000
B) 3,000
C) 4,000
D) 6,000