Refer to the following game.Firm AFirm B??Low PriceHigh Price?Low Price(9,10)(8,15)?High Price(-7,10)(11,11)Which of the following is true?
A. There does not exist a dominant strategy for firm A.
B. A dominant strategy for firm B is "low price."
C. A dominant strategy for firm A is "high price."
D. None of the answers is correct.
Answer: A
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Which of these transactions results in an increase in M1?
A) withdrawal of $100 cash from your checking account B) certificate of deposit matures, adding $520 to your checking account C) depositing a bank loan of $400 into your savings account D) depositing a $300 paycheck into your savings account E) none of the above
A firm's profit is
A) usually negative when opportunity costs are included. B) the difference between marginal revenue and marginal cost. C) the opportunity cost of the firm's shareholders. D) the difference between revenue and cost.
The Coase Theorem suggests that under its assumption, the efficient solution to an externality problem: a. depends on who owns property rights to the resources
b. is enhanced by government involvement in the negotiations. c. can be enhanced through the use of taxes. d. does not depend on the distribution of property rights.
The federal budget process begins when federal agencies submit their budget requests to the:
a. Treasury Department.
b. Council of Economic Advisors (CEA).
c. Office of Management and Budget (OMB).
d. Congressional Budget Office (CBO).