Refer to the following game.Firm AFirm B??Low PriceHigh Price?Low Price(9,10)(8,15)?High Price(-7,10)(11,11)What are the Nash equilibrium strategies for firm A and firm B respectively?
A. (low price, high price)
B. (high price, high price)
C. (low price, low price)
D. (low price, low price) and (high price, high price)
Answer: B
You might also like to view...
Consider an economic policy regime in which rules are well-known but frequently ignored. Which of these statements is true?
A) This regime might work in the long-run, but is unlikely to produce good outcomes in the short run. B) Policymakers in this regime might find that rules are being broken with increasing frequency. C) This regime is more likely to be supported by nonactivist, than by activist policymakers. D) This regime is more likely to result in high unemployment than in high inflation. E) This regime is unlikely to produce large government budget deficits.
Under oligopolistic market conditions,
a. the pricing actions of any one firm have no significant effect on the others. b. the pricing actions of any one firm have a significant effect on the others. c. no firm can have any control over its output price. d. all firms have identical prices for their products.
What would the interest rate need to be in order to earn $100 on an investment of $1,000 over two years? Assume interest compounds annually.
What will be an ideal response?
If the price of 1 peso in dollars is 10 cents, the price of 1 dollar in pesos is
a. 10 pesos. b. 1 peso. c. 10 centavos. d. 100 pesos.