Refer to the normal-form game of price competition shown below.Firm AFirm B??CD?A0,75,2?B5,10,8What are the pure Nash equilibrium strategies for this game?
A. {(A, C)}.
B. {(A, C) and (B, D)}.
C. {(B, C)}.
D. There is no pure strategy Nash equilibrium to this game.
Answer: D
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Industry X comprises only very few large firms engaged in stiff competition with each other. Industry X can best be described as
A) pure competition. B) monopolistic competition. C) pure monopoly. D) oligopoly.
In the long run, a firm can choose
A) to operate at any point on only one short-run average total cost curve. B) to operate along any short-run average total cost curves. C) to operate along any short-run average variable cost curves. D) to operate along any point of its short-run marginal cost curves.
Suppose you live in New York City and the government has imposed price ceilings on apartment rental rates. You want to rent an apartment from Smith, who says that unless you buy the furniture in the apartment for $4,000, he cannot rent the apartment to you. The condition of buying the furniture could be considered
A) a price ceiling. B) a price floor. C) a tie-in sale. D) to be something no renter would agree to. E) c and d
Given the graph for a particular industry shown above we know that
A. new entrants will not be attracted to this industry.
B. this industry can survive in both the short and long run.
C. the industry is making a profit.
D. this industry will disappear in the short run.