In a duopoly, if advertising only take customers from rivals rather than attracting new customers, then
A) the Nash equilibrium maximizes the joint payoff
B) firms must collude to maximize the joint payoff
C) the Nash equilibrium is that neither firm advertises
D) there is no dominant strategy
B) firms must collude to maximize the joint payoff
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A good is nonexcludable if no externalities, either negative or positive, are associated with its production or consumption.
Answer the following statement true (T) or false (F)
A player is playing a mixed strategy when:
A. he chooses a rule to randomize over the choice of a strategy. B. he chooses a strategy without randomizing. C. there is no uncertainty in his choice. D. it is perfectly predictable.
Studies show that white women earn approximately 25% less than white men. From this data alone, one should not conclude that white women are victims of discrimination. Name two other factors that could explain the difference in wages
Which of the following statements is true?
A. Above the optimal tax rate, a reduction in tax rates along the downward-sloping portion of the Laffer curve would increase tax revenues. B. According to supply-side fiscal policy, lower tax rates would shift the aggregate demand curve to the right, expanding the economy and creating some inflation. C. The presence of the automatic stabilizers tends to destabilize the economy. D. To combat inflation, Keynesians recommend lower taxes and greater government spending.