In the above figure, the monopolistically competitive firm makes ...

[WhattoUnderstand]

In the above figure, the monopolistically competitive firm makes an economic profit of
 
  A) 0.
  B) between 0 and 50 per day.
  C) between 50.01 and 100 per day.
  D) greater than 100.01 per day.

Question 2

Dell and Gateway must decide whether to lower their prices, based on the potential economic profits shown in the payoff matrix above. (The profits are in millions of dollars). In the Nash equilibrium
 
  A) Dell keeps its prices high and Gateway lowers its prices.
  B) both Dell and Gateway lower prices.
  C) Gateway keeps its prices high and Dell lowers its prices.
  D) both Dell and Gateway keep prices high.

[al]

Answer to Question 1

B

Answer to Question 2

B

[WhattoUnderstand]

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[al]

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