Is AP Microeconomics multiple choice?
The AP® Microeconomics exam is split into two sections, just like AP® Macroeconomics. It has the AP® Microeconomics multiple-choice section, and then the free response question, or FRQ. The multiple choice section is 70 minutes long and usually consists of 60 questions.
Does Patrick’s pie have a dominant strategy?
(c) 1 point • One point is earned for stating that Patrick’s Pie does not have a dominant strategy. One point is earned for correctly redrawing the payoff matrix and showing the effect of the side payment.
What is a Nash equilibrium AP microeconomics?
The Nash equilibrium is a decision-making theorem within game theory that states a player can achieve the desired outcome by not deviating from their initial strategy. In the Nash equilibrium, each player’s strategy is optimal when considering the decisions of other players.
Is microeconomics a hard class?
Microeconomics is a branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of limited resources which is contrast to macroeconomics. In sense of taking it as AP® course, many regard to microeconomics as more difficult than macro.
Is choosing an evening departure a dominant strategy for Airtouch explain?
(d) Is choosing an evening departure a dominant strategy for Airtouch? Explain. No, if Windward chooses a morning departure, Airtouch is better off choosing a morning departure.
When an oligopoly market is in Nash equilibrium?
When an oligopoly market reaches a Nash equilibrium, a firm will have chosen its best strategy, given the strategies chosen by other firms in the market. higher than in monopoly markets and lower than in perfectly competitive markets. The essence of an oligopolistic market is that there are only a few sellers.
What is Nash equilibrium in oligopoly?
Nash Equilibrium Equilibrium in oligopoly markets means that each firm will want to do the best it can given what its competitors are doing, and these competitors will do the best they can given what that firm is doing.
Is the behavior of oligopolies efficient in game theory?
Efficiency: No, Oligopolies price above marginal cost and do not produce at the lowest average cost so they are not allocatively or productively efficient. Graph: While there is a graph for oligopolies these firm’s behavior is better understood through game theory.
Why do oligopolies make money in the long run?
Long-run Profit: Oligopolies often earn an economic profit in the long run due to high barriers to entry which prevent new firms from entering the market. Efficiency: No, Oligopolies price above marginal cost and do not produce at the lowest average cost so they are not allocatively or productively efficient.
How are oligopolies related to interdependence between firms?
With oligopolies, there is usually a mutual interdependence between firms. The actions of one firm impact the actions (and profit) of other firms). Oligopolies are prone to collusion or the formation of cartels which set production quantities low and prices high.
How is a duopoly different from an oligopoly?
A Duopoly is an oligopoly with 2 firms. Product Difference: Either. Products may be homogeneous or differentiated. Ability to Affect Price: Yes. With oligopolies, there is usually a mutual interdependence between firms. The actions of one firm impact the actions (and profit) of other firms).