Each part of this question will be worth 2 points. State whe…
Each part of this question will be worth 2 points. State whether the following questions are “true” or “false.” You must explain your reasoning to receive full credit. Please record your answer by typing the letter that corresponds to the part you are answering. For example, if you are answering part a, type “a) your answer.” A Nash equilibrium is always a dominant strategy. The government should always shutdown monopolies because competition is always best. A firm should shut down anytime it earns negative economic profit. Monopolistic competition is inferior to perfect competition because deadweight loss will exist. A perfectly competitive firm should always set a price below the market price. Members of a cartel rarely cheat because the cartel can earn bigger profits as a group. The equilibrium quantity under monopoly will always be larger than the competitive equilibrium.