In the game depicted below, firms 1 and 2 must independently decide whether to charge high or low prices.Firm 1Firm 2??High PriceLow Price?High Price(10,10)(5,-5)?Low Price(-5,5)(0,0)Which of the following are secure strategies for players 1 and 2, respectively?
A. (high price, high price)
B. (low price, high price)
C. (low price, low price)
D. (high price, low price)
Answer: A
You might also like to view...
The United States Congress of Industrial Organizations was born as a result of all of the following except
a. minimum wage laws that brought increased competition to unionized workers b. the industrial growth brought about by technological change c. craft orientation being an impediment to further union growth d. the need for broader representation of workers with very different skills and occupations but belonging to a common industry e. the failure of craft unions to restructure its orientation according to the needs of industrial workers
Which of the following is a major reason for offshoring?
a. Increased global demand for services, b. Greater worldwide competition, c. The gradual diminishing of global technological advances, d. All of the above are reasons for offshoring.
Refer to Figure 4-8. What is the value of the portion of producer surplus transferred to consumers as a result of the rent ceiling?
A) $40,000 B) $100,000 C) $125,000 D) $140,000
Over the past 80 years, prices in the U.S. have risen on average about
a. 2 percent per year. b. 4 percent per year. c. 3.6 percent per year. d. 6 percent per year.