In 2008, a former Intel engineer has been charged with stealing trade secrets worth $1 billion. Intel owns 90 percent of the worldwide market for microprocessors, AMD has the rest
Conducting R&D is very expensive so suppose that each of these firms can either steal R&D or develop their own R&D. If both firms develop their own R&D, economic profit will be $50 million each. If one company steals R&D, that firm earns $100 million in economic profit while the other firm earns $10 million. If both firms steal R&D, each firm breaks even. What is NOT true about this game? A) The outcome will not be a dominant strategy equilibrium.
B) A strategy is to steal R&D.
C) A firm will make more profit if it steals R&D.
D) A strategy is to conduct R&D.
C
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If a demand curve shifts to the right, then
A) quantity demanded has decreased. B) quantity demanded has increased. C) demand has increased. D) demand has decreased.
In a market for emission permits, firms that emit over their allowed limits
A) are forced to shut down. B) are taxed by the government for the amount of emissions. C) receive a subsidy for the amount of emissions. D) pay a price of these emissions.
In order for a strike to be successful, the union must decrease the supply of both union and non-union labor
a. True b. False
Economists define the rent of a resource as the
a. value of the resource b. difference between what the resource is paid on the market and the cost of bringing that resource into production c. present value of the resource d. land-profit generated by the resource e. opportunity cost of using the resource in production