# Refer to the graph above, which represents

Refer to the graph above, which represents the demand and cost curves for Neat and Trim BarberShop, a monopolistically competitive firm. The profit-maximizing number of haircuts for theBarber Shop isA) 20B) 23C) 25D) 30E) some value less than 2013.Refer to the graph again. The profit-maximizing price of haircuts by Neat and Trim isA) $10B) $12C) $14D) $16E) some price less than $1014.If Neat and Trim maximizes profits, it ________ of $80. A) receives a total revenueB) earns a profitC) has a total costD) suffers a loss15.If Neat and Trim maximizes profits, its ________ equals $320.A) total costB) total revenueC) profitD) variable costE) average costF) marginal costG) marginal revenue16.If Neat and Trim maximizes profits, its ________ is $240.A) total revenueB) total costC) profitD) marginal revenueE) average costF) marginal costG) price17.Refer to the graph. From society’s point of view, the efficient output level is ______ haircuts.A) 20B) 23C) 25 D) 30E) whatever amount of haircuts that occur at the horizontal intercept of the demand function18.Refer to the graph again. Suppose that the profits or losses incurred by Neat and Trim are areflection of the Barber Shop industry as a whole. In the Barber Shop industry, in the long run,A) firms will continue to earn economic profits.B) firms will enter until all firms earn zero economic profit.C) product demand will become perfectly inelasticD) the government will impose price controls to eliminate any economic profits.19.Suppose that two players are playing the following game. Player A can choose either Top or Bottom, and Player B can choose either Left or Right. The twoplayers choose their strategies simultaneously. The payoffs are given in the table, where thenumber on the left is the payoff to Player A, and the number on the right is the payoff to Player B.How many possible outcomes are there in this game?A) 2B) 4C) 8D) 1620.Does Player A have a dominant strategy? If so, what is it?A) Top is a dominant strategy for Player AB) Bottom is a dominant strategy for Player AC) Left is a dominant strategy for Player A D) Right is a dominant strategy for Player AE) There is no dominant strategy for Player A21.Does Player B have a dominant strategy? If so, what is it?A) Top is a dominant strategy for Player BB) Bottom is a dominant strategy for Player BC) Left is a dominant strategy for Player BD) Right is a dominant strategy for Player BE) There is no dominant strategy for Player B22.The following four questions are True/False. The strategy combination of Player A choosing Topand Player B choosing Left is a Nash Equilibrium.A) TrueB) False23.The strategy combination of Player A choosing Top and Player B choosing Right is a NashEquilibrium.A) TrueB) False24.The strategy combination of Player A choosing Bottom and Player B choosing Left is a NashEquilibrium.A) TrueB) False25.The strategy combination of Player A choosing Bottom and Player B choosing Right is a NashEquilibrium.A) TrueB) False26.What is the maximin strategy for Player A?A) TopB) Bottom C) LeftD) RightE) There is no maximin strategy for Player A27.What is the maximin strategy for Player B?A) TopB) BottomC) LeftD) RightE) There is no maximin strategy for Player B28.Now suppose the same game is played with the exception that Player A moves first and Player Bmoves second. Using the backward induction method discussed in the online class notes, whatwill be the outcome of the game? Hint: Draw the game tree associated with this situation.A) Player A chooses Top and Player B chooses LeftB) Player A chooses Top and Player B chooses RightC) Player A chooses Bottom and Player B chooses LeftD) Player A chooses Bottom and Player B chooses Right29. Which of the following is true about antitrust law?A) The “Rule of Reason” strengthened the Sherman ActB) Antitrust legislation is generally aimed at making markets more concentrated with asmaller number of firmsC) Antitrust legislation doesn’t have as many important applications today, and this isemphasized by the fact that the Clayton Act was passed more than 100 years agoD) All actions that reduce competition are deemed illegal according to antitrust lawE) The Clayton act makes specific rules about economic actions being illegal if they result ina greatly reduced amount of competition 34.The ________ is the share of industry output in sales or employment accounted for by the topfirms in an industry.A) concentration ratioB) contestability ratioC) competitive indexD) collusive levelE) HHI