Direction: Explain the given answer for each problem.

Theory of cost Total Output \\unable Total cou (pic) (dollar) (dollar) 0 300 100 400 200 1.000 100 100 3) The above table gives some of the costs of the Delicious Pic Company. What is the total fixed cost of producing 100 pics? A) S300 B) $400 C) $700 More information is needed to calculate the total fixed cost Answer: APerfect comprtition 2. When firms enter an industry, market supply A. decreases and firm demand decreases. B. increases and firm demand does not change. C. decreases and firm supply decreases. D. increases and firm demand increases. E. increases and firm demand shifts down. Answer: EMonopoly 4) In the figure above, compared to a perfectly competitive industry with the same costs, a single- price, unregulated monopoly will decrease production by A. zero. 2 units per day. C. 4 units per day. D. 6 units per day. Answer: BOligopoly 1) Which of the following is NOT true of Nash equilibrium in a game involving players A and B? A) Given the strategies of B, player A has chosen the highest payoff strategy. B) Neither player A or B wants to choose a different strategy. C) Both players will not change their choices. D) Both players must have dominant strategies. E) Given the strategies of A, player B has chosen the highest payoff strategy. Answer: D