??Firm 2???High PriceLow PriceFirm 1High PriceFirm 1 earns $100; Firm 2 earns $100Firm 1 earns $25; Firm 2 earns $150?Low PriceFirm 1 earns $150; Firm 2 earns $25Firm 1 earns $50; Firm 2 earns $50Table 12.2In the game shown in Table 12.2, the firms:
A. both have a dominant strategy of choosing a low price.
B. both have a dominant strategy of choosing a high price.
C. do not have a dominant strategy.
D. will alternate between high price and low price strategies.
Answer: A
You might also like to view...
If you divide the amount of nominal GDP by the stock of money, you have computed the
A. multiplier. B. price level. C. velocity of circulation. D. inflation rate.
Suppose the demand for X is given by Qxd = 100 - 2PX + 4PY + 10M + 2A, where PX represents the price of good X, PY is the price of good Y, M is income and A is the amount of advertising on good X. Good X is
A. a Giffen good. B. an inferior good. C. a complement. D. a normal good.
According to economist Julian Simon,
A. legal and illegal immigrants have a positive effect on the welfare of American citizens. B. legal immigrants have a favorable impact on the welfare of American citizens, but illegal immigrants have a negative impact that almost exactly offsets the positive effect of the legal immigrants. C. legal immigrants have a favorable impact on the welfare of American citizens, but illegal immigrants have a negative impact. However, the positive effect of the legal immigrants is stronger than the negative impact of the illegal immigrants. D. legal and illegal immigrants have a negative effect on the welfare of American citizens.
A bond is a financial security that represents
A) ownership in a corporation. B) the portion of profits paid to shareholders. C) the interest rate paid on a share of stock. D) a promise to repay a fixed amount of funds.