Table 11-2 \[\begin{array} { | c | c | c | c | } \hline \begin{array} { c } \text { Quantity } \\ \text { (cases) } \end{array} & \begin{array} { c } \text { Price } \\ \text { (dollars) } \end{array} & \begin{array} { c } \text { Total Revenue } \\ \text { (dollars) } \end{array} & \begin{array} { c } \text { Total Cost } \\ \text { (dollars) } \end{array} \\ \hline 1 & \$ 75 & \$ 75 & \$ 60 \\ \hline 2 & 70 & 140 & 85 \\ \hline 3 & 65 & 195 & 105 \\ \hline 4 & 60 & 240 & 115 \\ \hline 5 & 55 & 275 & 130 \\ \hline 6 & 50 & 300 & 155 \\ \hline 7 & 45 & 315 & 190 \\ \hline 8 & 40 & 320 & 230 \\ \hline 9 & 35 & 315 & 280 \\ \hline \end{array}\] Eco Energy is a monopolistically competitive producer of a sports beverage called Power On. Table 11-2 shows the firm's demand and cost schedules. -Refer to Table 11-2.What is the output (Q)that maximizes profit and what is the price (P)charged?

A) P=$55; Q=5 cases B) P=$50; Q=6 cases C) P=$45; Q=7 cases D) P=$40; Q=8 cases A) P=$55; Q=5 cases B) P=$50; Q=6 cases C) P=$45; Q=7 cases D) P=$40; Q=8 cases

A) is rampant in perfect competition as all firms charge the same price. B) reduces market concentration in an industry. C) among firms is difficult to maintain because it eliminates long run economic profit. D) is more difficult when there are many firms producing differentiated products in an industry. A) is rampant in perfect competition as all firms charge the same price. B) reduces market concentration in an industry. C) among firms is difficult to maintain because it eliminates long run economic profit. D) is more difficult when there are many firms producing differentiated products in an industry.

Table 11-13 $\begin{array}{c} \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad\text { Power Fuel's (P) Strategy }\\ \text { Brawny Juice's (B) Strategy } \begin{array}{|c|c|c|} \hline& \text { High Price } & \text { Low Price } \\ \hline{\text { High Price }} & \text { P: } \$ 12 \mathrm{~m} & \text { P: } \$ 16 \mathrm{~m} \\ & \text { B: } \$ 12 \mathrm{~m} & \text { B: } \$ 4 m \\ \hline {\text { Low Price }} & \text { P: } \$ 4 \mathrm{~m} & \text { P: } \$ 8 \mathrm{~m} \\ & \text { B: } \$ 16 \mathrm{~m} & \text { B: } \$ 8 \mathrm{~m}\\ \hline \end{array}\end{array}$ Two rival oligopolists in the athletic supplements industry, the Power Fuel Company and the Brawny Juice Company, have to decide on their pricing strategy.Each can choose either a high price or a low price.Table 11-13 shows the payoff matrix with the profits that each firm can expect to earn depending on the pricing strategy it adopts. -Refer to Table 11-13.If the firms act out of individual self-interest,which prices will they select?

A) Both firms will select a high price. B) Brawny Juice will select a high price, Power Fuel will select a low price. C) Brawny Juice will select a low price, Power Fuel will select a high price. D) Both firms will select a low price. A) Both firms will select a high price. B) Brawny Juice will select a high price, Power Fuel will select a low price. C) Brawny Juice will select a low price, Power Fuel will select a high price. D) Both firms will select a low price.