Table B shows the pricing options for two medical doctors operating as an oligopoly in a rural market. Which of the following pricing strategies does Table 8 depict?
a) Dr. Fine always plays “Tit-for-Tat” and Dr. Good always plays “Tit-for-Tat.”
b) Dr. Fine always plays “Tit-for-Tat” and Dr. Good always chooses the “Low” price.
c) Dr. Good always plays “Tit-for-Tat” and Dr. Fine always chooses the “Low” price.
d) Dr. Good always chooses the “Low” price and Dr. Fine always chooses the “Low” price.
e) When there is only a single period in which to choose and Dr. Fine does not know what Dr. Good will do, Dr. Fine always chooses the Nash Noncooperative Equilibrium price strategy.
Answer: c) Dr. Good always plays “Tit-for-Tat” and Dr. Fine always chooses the “Low” price.
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A "search good" is:
a. One that depends on how the product behaves over time b. A product whose quality is only found out over time by finding how durable it is c. Like a peach that can be examined for flaws d. Like a used car, since it is easy to determine its inherent quality e. None of the above
You can spend $10 for lunch and you would like to purchase two cheeseburgers. When you get to the restaurant, you find out the price for cheeseburger has increased from $5 to $6, so you decide to purchase just one cheeseburger. This is best described as:
A. a decrease in the buyer's reservation price. B. the substitution effect of a price change. C. the income effect of a price change. D. an increase in the buyer's reservation price.
Which of the following statements is FALSE?
What will be an ideal response?
Economic systems:
A. provide all the goods people want and desire. B. can eliminate scarcity. C. address the questions what is produced, how it is produced, and for whom it is produced. D. provide equal distribution of well-being among its participants.