A Certain Type of Mushroom Used to Be Produced on 50

question 52

Multiple Choice

A certain type of mushroom used to be produced on 50 farms, each of which had a cost function c(y) = y₂ + 1, where y > 0 and c(0) = 0.The firms operated as competitors.The demand curve for this kind of mushroom is given by D(p) = 52 - p.Marauding deviant Ninja turtles invaded many of the mushroom farms leaving absolute devastation and loathsome slime in their wake.(The turtles had no effect on the cost functions of farms that were not invaded.)

• A)If all of the farms but one were invaded and that farm became a monopolist, total output of mushrooms would fall to half of the preinvasion output.
• B)If all of the farms but one were invaded and that farm became a monopolist, total output of mushrooms would fall to 1/50th of the preinvasion output.
• C)If all of the farms but two were invaded and the two undamaged farms became Cournot duopolists, total output of mushrooms would be 2/3 of the preinvasion output.
• D)If half of the farms were invaded and the industry remained competitive, industry output would fall to half of the preinvasion output.
• E)If half of the farms were invaded and the industry remained competitive, industry output would fall but would be greater than half of the preinvasion output.

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Definitions:

Milgram

Refers to a series of social psychology experiments conducted by Stanley Milgram, which demonstrated people's willingness to obey authority figures even when asked to perform actions conflicting with their personal conscience.

Obedience Level

The extent to which individuals comply with the commands or orders from authority figures.

Over The Telephone

A mode of communication or interaction that occurs through voice calls using telephones.

Increased

Refers to a quantity or condition becoming larger in size, number, value, strength, or intensity.