1. For the profit-maximizing firm, price markup is a markup over _______ cost, and the markup depends only on _______. a. marginal, elasticity of demand b. average, elasticity of supply c. total, elasticity of fringe supply d. fixed, production elasticity 2) There is an outward shift in the demand curve of a profit-maximizing monopolist, and the monopolist decreases output. What does the monopolist do to price?

2. The payoff matrix for FORM and GM, each of which is determining whether to offer a technical change or a styling change in a new-model product, is as follows (where H>M>L profits, subscript GM refers to GM, subscript F refers to FORD): Technical Change Styling Change FORD Technical Change Hf, Mgm Hf, Lgm FORD Styling Change Lf, Lgm Mf, Hgm Only one of the auto companies has a dominant strategy: which company? And what is its dominant strategy?