The tit-for-tat strategy implies that the firms
a. in non-competitive industries match price increases but ignore price decreases
b. will follow the lead of the dominant firm in making pricing decisions
c. prices will change whenever fixed cost changes
d. cooperate on the first round, and then follow your competitors reactions on the second round
e. price will only change if demand changes
D
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Kyle and Stan are playing Odds or Evens, where Kyle is designated as the "odd" player and Stan is designated as the "even" player. They decide to play the game 10 times. If Kyle adopts a pure strategy of "shoot 2," Stan shoul
A) also adopt a pure strategy of "shoot 2." B) adopt a pure strategy of "shoot 1." C) adopt a mixed strategy of "shoot 1" 50% of the time and "shoot 2" 50% of the time. D) adopt a mixed strategy of "shoot 1" more than 50% of the time and "shoot 2" less than 50% of the time.
In n-player games, any number of players between 4 and infinity can theoretically play
Indicate whether the statement is true or false
Price cannot fall so low that some sellers choose to supply a quantity of zero
a. True b. False Indicate whether the statement is true or false
Which of the following stock market increases is best explained by the notion of a bubble?
A. The late-1982 rally in which the DJIA doubled in 4 months B. The U.S. stock market in the late-1920s C. The decade of the 1980s D. The U.S. stock market's growth in 2009