The following provides information for a one-shot game.Firm AFirm B??Low PriceHigh Price?Low Price(2,2)(10,-8)?High Price(-8,10)(15,15)What are the Nash equilibrium strategies for this game?
A. (low price, low price) and (high price, high price)
B. (high price, high price)
C. (low price, low price)
D. None of the answers is correct.
Answer: A
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Indicate whether the statement is true or false
In order to identify their used cars as plums (high-quality), many used car dealers:
A. raise the minimum price of plums (high-quality). B. advertise their prices. C. offer money-back guarantees. D. raise the minimum price of lemons (low-quality).
Suppose a patent is granted for a product that has the linear demand curve P = a - b Q. The constant marginal cost of producing this product is $50 per unit, a unit sells for $150, and consumers purchase 100 units of the good at that price. If the monopoly is maximizing profit, b equals
A) 1. B) 1.5. C) 2. D) 2.5.
With few applicants and several key positions to fill, the owner of a computer support company increased the starting wage offered from $20.00 to $25.00 per hour. With the higher wage, there were more qualified applicants than needed, and all the positions were filled. What is true of the increased wage offer?
a. It sets $25.00 as the equilibrium wage. b. It establishes the equilibrium quantity. c. It attracted a surplus of labor. d. The quantity demanded exceeded the quantity supplied.