Question 7 There are two inputs L and K with the price of each input w and r, respectively. When the isocost line is tan

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Question 7
There are two inputs L and K with the price of each input w andr,respectively. When the isocost line is tangent to a strictlyconvexisoquant, thenI .MR = MCII. The firm is producing at the minimum cost for the given levelof outputIIl. The two inputs K and L are perfect substitutesIV. MRS=-w/rA. l is correctB. Il is correctC. ll and Ill are correctD. IV is correct
Question 8In a two players game,I. A Nash equilibrium is a strategy profile at which neither playercangain by individually changing her strategy.I. A subgame perfect equilibrium is also a Nash equilibriumIll. A Nash equilibrium is the payoffs which are the highest foreachplayer.A. Both I and Il are correct.B. Only I is correct.C. Only Il is correct.D. All statements are correct.
There are two inputs L and K with the price of each input w andr,respectively. When the isocost line is tangent to a strictlyconvexisoquant, then1MR = MCI. The firm is producing at the minimum cost for the given level ofoutputIIl. The two inputs K and L are perfect substitutesIV. MRS=-w/rO l is correctO Il is correctO ll and Ill are correctO IV is correct
Question 9Consider a monopolist setting a single price to all consumers thatfaces ademand curve of P = 20 -2 q, where P is price and q is the quantitysold.The monopolist has a marginal cost curve of MC = q. Thegovernmentimplements a per-unit tax of $5 per unit, to be paid for by themonopolist.What is the increase in price faced by consumers as a result oftheintroduction of the tax?A.1B.2C.3D.5
Question 10If a firm moves from one point on a strictly convex productionisoquant toanother point on the same isoquant, which of the followingstatement(s)is/are true?I.A change in the marginal rate of substitution (MRS)I. A constant rate of technical substitution (TRS)Ill. A change in the marginal products of the inputsIV. The same level of outputA. only Il is trueB. I, Ill and IV are trueC. I and Il are trueD. Ill and IV are true