In “The Dirty Secret of Apps: Many Go Bust,” the app market is described as “close” to perfectly competitive because of

Identify the Nash Equilibrium for the static game below.

Suppose this market is characterized by many buyers and sellers and the honey is considered undifferentiated. Honey Bee Farms (HBF) is one of those sellers. Solve for the price charged by HBF in this market.

Two undergraduates, Harry and Sally, meet in the library. They would like to continue their conversation, but have to go to their separate classes. They arrange to meet for coffee after class, but in the excitement of meeting each other, forget to identify the place to meet or exchange cell phone numbers. There are two possible choices: Starbucks and Local Latte. It’s not possible to try both locations because the coffee shops are on opposite sides of campus. Both prefer Local Latte. Suppose p is the probability that Harry chooses Starbucks and (1-p) is the probability he chooses Local Latte. Suppose q is the probability that Sally chooses Starbucks and (1-q) is the probability she chooses Local Latte. Assume both players act to maximize payoffs. The outcomes related to this interaction are shown below: What are the values of p and q that make up the Nash Equilibrium in Mixed Strategy?

Would the perfectly competitive firm depicted in the graph below stay in business in the short run, shut down in the short run, be indifferent between staying in business and shutting down in the short run, or is it impossible to tell in the short run with given information?    

Match the tool for presenting graphical data to its best descriptor.

Assume that Amheuser-Busch’s profit-maximizing quantity is

Still consider the same market and firm in questions #16-18, but now suppose the firm’s long-run total cost function is given by:

Use the prompt below to answer questions #11-13. Suppose the Big Horn Corporation hired an economic consultant to estimate its production and cost functions.

Using Left or Right, if necessary, name the skeletal muscle that the pointer is pointing to: _______ What is the Action of this skeletal muscle? _______