Refer to the payoff matrix below. Which of the following is true for Best Lights?
A) They do not have a pure strategy.
B) Their dominant strategy is to set a Low Price.
C) They do not have a dominant strategy.
D) Their dominant strategy is to set a High Price.
B) Their dominant strategy is to set a Low Price.
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U.S. imports of sugar are limited by an import quota that, according to a study updated in 2013, imposed a total cost on American consumers close to $________, or an average cost of ________ per year for every job saved in the U.S sugar industry
A) $3 billion; $10 B) $105 million; $3 C) $2 billion; $110 D) $3 billion; $1,000,000 E) $370 million; $20
The solution of a game is dependent upon
a. predicted response of competitors b. the existence of a perfectly inelastic demand curve c. costs of production being constant d. economies of scale in production e. marginal revenue being equal to marginal cost
If the marginal propensity to consume is 0.75 and the equilibrium national income level is $500 billion, then a $25 billion increase in aggregate expenditure will cause the aggregate expenditure curve to shift
a. downward and national income to decrease by $33.3 billion b. upward and national income to increase by $33.3 billion c. downward and national income to increase by $25 billion d. upward and national income to increase by $100 billion e. upward and national income to decrease by $100 billion
The model in which one firm sets its price first, and others in the industry charge the same price is known as:
a. the Nash equilibrium. b. price leadership. c. a tit for tat strategy. d. prisoners' dilemma.