Refer to the information provided in Table 14.5 below to answer the question that follows.
Table 14.5B's Strategy
?AdvertiseDon't Advertise??A's profit $200 millionA's profit $400 million?AdvertiseB's profit $200 millionB's profit $100 millionA's Strategy????Don'tA's profit $100 millionA's profit $150 million?AdvertiseB's profit $400 millionB's profit $150 millionRefer to Table 14.5. What is the Nash equilibrium in the game?
A. (Advertise, Don't Advertise)
B. (Advertise, Advertise)
C. (Don't Advertise, Don't Advertise)
D. (Don't Advertise, Advertise)
Answer: B
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A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
Peak-load pricing suggests that some prices are a function of
A) extensions. B) time. C) costs. D) constant elasticities.
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If two families are identical with respect to size, income, general expenses, etc., and are taxed equally, we say that there is
a. horizontal equity. b. vertical equity. c. observance of the ability-to-pay principle. d. intergenerational equity.