If Simple were able to move first in a sequential version of the game in Scenario 13.15, the equilibrium would be
A) an $80 price for Simple and a $70 price for Boring.
B) an $80 price for Simple and a $25 price for Boring.
C) a $35 price for Simple and a $70 price for Boring.
D) a $35 price for Simple and a $25 price for Boring.
E) a mixed strategy equilibrium.
B
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Which of the following is likely to arise in a market with asymmetric information?
A) Moral hazard B) A pecuniary externality C) A positive externality D) A prisoners' dilemma
The nominal exchange rate is 30 Thai bhat for one U.S. dollar. A sub sandwich combo deal in the U.S. costs $6 dollars in the U.S. and 120 bhat in Thailand. The real exchange rate is
a. 3/8 b. 2/3 c. 3/2 d. 8/3
The price elasticity of supply is a measure of the responsiveness of:
A. the change in price to the quantity supplied. B. the suppliers with respect to the change in price. C. the quantity supplied to the change in income. D. the quantity supplied to the changes in price.
The marginal tax rate is
A. the fraction of an additional dollar of income that must be paid in taxes. B. the average amount of government spending that is financed by taxes. C. the total amount of taxes paid divided by after-tax income. D. the total amount of taxes paid divided by before-tax income.