In a duopoly, if advertising only take customers from rivals rather than attracting new customers, then
A) the Nash equilibrium does not maximize the joint payoff
B) the Nash equilibrium maximizes the joint payoff
C) firms need to collude to maximize their joint payoff
D) there is no dominant strategy
A) the Nash equilibrium does not maximize the joint payoff
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If an individual had the option of receiving a cash transfer equal to the value of the housing subsidy, _____
a. they would be better off b. they could rent better housing than the public housing c. they could rent worse housing than the public housing d. all of the above e. a and b
The market for medical care relies primarily on:
a. For profit providers. b. Not for profit providers. c. Co-ops. d. Hospitals. e. The substitution effect.
If production of a good creates external benefits, a competitive market will likely produce
a. less output than would maximize profit. b. more output than would maximize profit. c. less output than is efficient. d. more output than is efficient.
In the macroeconomic model of aggregate supply and aggregate demand:
A. quantity represents GDP. B. price is calculated as a weighted average of the prices of all goods and services. C. price is the overall price level. D. All of these are true.