The figure below presents information for a one-shot game.Firm AFirm B??Low PriceHigh Price?Low Price(2,2)(10,-8)?High Price(-8,10)(6,6)What are secure strategies for firm A and firm B respectively?
A. (high price, low price)
B. (high price, high price)
C. (low price, low price)
D. (low price, high price)
Answer: C
You might also like to view...
Refer to Cournot Problem. Each firm will produce.
Consider a Cournot oligopoly with two identical firms. These firms each have constant marginal costs of $10. The market for these firms’ product has demand Q = 100 - P. a. 22.5 units b. 30 units. c. 45 units. d. 90 units.
While moving on the production possibilities frontier, if the opportunity cost of producing one good is 1/2, the opportunity cost of producing the other good (in the same range) is
A) 1/2. B) 1/4. C) 2. D) 4. E) An amount that cannot be calculated without more information.
In the above figure, what is the amount of producer surplus at the efficient quantity?
A) $0 B) $1,000 C) $2,000 D) $4,000
If regulators disallow price increases requested by a natural monopoly that is currently earning an economic loss, quality of service will
A) increase rapidly. B) likely fall. C) remain unchanged. D) none of the above.