11. The figure above shows the demand and cost curves for a single-price monopolist. What economic profit does this firm earn?

(A) $400
(B) $200
(C) zero
(D) $600

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

13. Dell and Gateway must decide whether to lower their prices, based on the potential profits shown in the payoff matrix above. (The profits are in millions of dollars.) In the Nash equilibrium, Dell's profit is _______ million and Gateway's profit is _______ million. (A) 5； 20 (B) 15； 15 (C) 10； 10 (D) 20； 5

14. Dell and Gateway must decide whether to lower their prices, based on the potential profits shown in the payoff matrix above. (The profits are in millions of dollars.) If the firms collude and don't cheat, Dell's profit is _______ million and Gateway's profit is _______ million. (A) 5； 20 (B) 15； 15 (C) 10； 10 (D) 20； 5

15. The firm shown in the figure above is _______. (A) not a natural monopoly because its MC curve is below its ATC curve. (B) not a natural monopoly because its MC curve is horizontal. (C) not a natural monopoly because its ATC curve slopes downward where it intersects the demand curve. (D) a natural monopoly because its ATC curve slopes downward where it intersects the demand curve.

16. In the above figure, the utility of wealth curve shown indicates that individual is _______. (A) risk averse. (B) risk preferring. (C) risk neutral. (D) risk averse or risk neutral, depending on income.

17. The above figure shows how an individual evaluates a bet in which he or she has a 0.5 probability of receiving $20 and a 0.5 probability of receiving $200. The individual would be indifferent between (A) $200 with certainty or the expected value of the bet. (B) $20 with certainty or the expected value of the bet. (C) $110 with certainty and the expected value of the bet. (D) $80 with certainty or the expected value of the bet.

18. James has a utility of wealth schedule in the above table. He is offered a job selling video games at Games Galore. James' compensation depends on how much he sells. In a poor sales period, a salesperson makes $100 per month. In a good sales period, a salesperson makes $600 per month. James is told by the manager that, in any given month, there is a 25 percent chance of a poor sales period and a 75 percent chance of a good sales period. What is James' expected income from taking this job? (A) $600 (B) $350 (C) $475 (D) $100

19. James has a utility of wealth schedule in the above table. He is offered a job selling video games at Games Galore. James' compensation depends on how much he sells. In a poor sales period, a salesperson makes $100 per month. In a good sales period, a salesperson makes $600 per month. James is told by the manager that, in any given month, there is a 25 percent chance of a poor sales period and a 75 percent chance of a good sales period. What is James' expected utility from taking this job? (A) 150 (B) 175 (C) 100 (D) 200

20. Based on the above figure that shows the pre-trade PPFs for the nations of Utopia and Apogee, when trade begins between Utopia and Apogee, it will be profitableI. for Utopia to export cars.II. for Utopia to export trucks.III. for Apogee to export cars. (A) I and III (B) I only (C) II only (D) II and III

21. In the above figure, flow E represents _______. (A) government borrowing (B) government lending (C) net taxes (D) household borrowing

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