3. In the above figure, the government has imposed a tax on sellers of pizza. The amount of the tax
(A) is $40.
(B) is $10.
(C) is $30.
(D) cannot be determined without more information.

4. In the above figure, the government has imposed a tax on sellers of pizza. The tax increases (A) the amount received by sellers by $30. (B) the price paid by buyers by $30. (C) the quantity of pizza sold from 40 million per year to 60 million per year. (D) the after-tax price by $40.

5. In the above figure, the government has imposed a tax on sellers of pizza. After the tax has been imposed, the after-tax price of a pizza is _______ and the equilibrium quantity is _______ per year. (A) $20； 40 million (B) $10； 60 million (C) $20； 20 million (D) $30； 20 million

6. In the above figure, when his wage rate increases from $5.00 to $7.50 per hour, which of the following does Bob experience? (A) a change in his preferences (B) an increase in the opportunity cost of leisure (C) an increase in the opportunity cost of working (D) all of the above

7. In the above figure, when the wage rate increases from $5.00 to $7.50 an hour, Bob chooses less leisure because of (A) the substitution effect. (B) the income effect. (C) both of the above (D) neither of the above

8. Market power is the _______. (A) political power of monopolies. (B) size of the market. (C) forces of supply and demand. (D) ability of a firm to set its price.

9. The figure above shows the demand and cost curves for a single-price monopolist. What level of output maximizes the firm's economic profit? (A) 0 units (B) 30 units (C) 20 units (D) 50 units

10. The figure above shows the demand and cost curves for a single-price monopolist. What price will the firm charge? (A) $50 per unit (B) $30 per unit (C) $10 per unit (D) $20 per unit

11. The figure above shows the demand and cost curves for a single-price monopolist. What economic profit does this firm earn? (A) $400 (B) $200 (C) zero (D) $600

12. Dell and Gateway must decide whether to lower their prices, based on the potential profits shown in the payoff matrix above. (The profits are in millions of dollars.) In the Nash equilibrium, (A) both Dell and Gateway lower prices. (B) Dell keeps its prices high and Gateway lowers its prices. (C) Gateway keeps its prices high and Dell lowers its prices. (D) both Dell and Gateway keep prices high.

13. Dell and Gateway must decide whether to lower their prices, based on the potential profits shown in the payoff matrix above. (The profits are in millions of dollars.) In the Nash equilibrium, Dell's profit is _______ million and Gateway's profit is _______ million. (A) 5； 20 (B) 15； 15 (C) 10； 10 (D) 20； 5

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