Q1 Which of the following statement is trur regarding the relationship between average and marginal cost funtions?
a. The average cost function is always smaller than marginal cost function.
b. The average cost function is always greater than marginal cost function.
c. When average cost is a decreasing function of output,marginal cost is greater than average cost.
d. When average cost neither decreases or increases( because it is constant or at a minimum point), marginal cost is equal to average cost.
e. When average cost is an increasing function of output, marginal cost is less than average cost.
Q2 What is Nash Equilibrium?
a. A state where the sum of all payoffs is maximized.
b. A state where each player is doing the best it can, given the strategies of all other players
c. A state where each player always must play a dominant strategy.
d. A state at which the MR=MC for a firm
e. A state where the players always have achieved their best possible result.
Q3 At what point can a firm achieve a profit maximizing quantity?
a. MC=D
b. MRc. MR=MC
d. MR>MC
e. MR=D