1. Oligopoly

8. Stable price under conditions of a kinked demand curve £ Q O P 1 Q 1 D  AR MC 2 MC 1 MR a b

11. PRICE LEADERSHIP BY DOMINANT FIRM

19. Prisoner’s Dilemma by Coke and Pepsi Coke Pepsi (right) Discount Price Regular Price Discount Price Regular Price $4,000, $2,000 $10,000, $1,000 $1,500, $6,500 $12,500, $9,000 (left) Weekly Profits from Grocery Store

26. PAYOFF FOR A TWO PERSON CONSTANT SUM GAME B’s strategies A ‘s strategies a ’ b ’ c’ d’ Row minima a 10 9 14 13 9 b 11 8 4 15 4 c 6 7 15 17 6 Column maxima 11 9 15 17 9=9

27. Non – determined game: B’S STRATEGIES A’s strategies 1 2 3 Row minima 1 19 23 11 11 2 15 19 20 15 3 27 18 19 18 Column. max 27 23 20 18/20

30. EFFECT OF UNIT TAXES UNDER PC EFFECT SHORT RUN LONG RUN PRICE INCREASES BUT BY LESS THAN TAX INCREASES BY FULL AMOUNT OF TAX FIRM’S OUTPUT DECREASES UNCHANGED INDUSTRY OUTPUT DECREASES DECREASES NUMBER OF FIRMS SAME DECREASES

31. EFFECT OF LUMPSUM TAX UNDER PC EFFECT SHORT RUN LONGRUN PRICE NO CHANGE INCREASED QUANTITY BY FIRM NO CHANGE INCREASED INDUSTRY OUTPUT NO CHANGE DECREASED NO. OF FIRMS NO CHANGE DECREASED