In the game shown below, firms 1 and 2 must independently decide whether to charge high or low prices.Firm OneFirm Two??High PriceLow Price?High Price(10,10)(5,-5)?Low Price(5,-5)(0,0)Which of the following are Nash equilibrium payoffs in the one-shot game?
A. (-5, 5)
B. (0, 0)
C. (5, -5)
D. (10, 10)
Answer: D
You might also like to view...
Why do some people tip generously at restaurants to which they never plan to return?
What will be an ideal response?
The figure above shows Sam's budget line. Which of the following equals the slope of Sam's budget line?
A) Y/Pc B) Y/Pg C) (Pc/Pg) D) (Pg/Pc)
Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. If 10,000 units of iced tea are sold
A) the deadweight loss is equal to economic surplus. B) producer surplus equals consumer surplus. C) marginal benefit is less than marginal cost. D) the marginal benefit of each of the 10,000 units of iced tea equals $3.
Anti-poverty programs
a. encourage saving among recipient groups. b. impose a very low marginal tax rate on income. c. are only made available to those with no other source of income. d. may discourage the poor from escaping poverty on their own.