Consider Figure 12.3. If the players choose independently, what will be the outcome?
A. Becky chooses a low price and David chooses a low price.
B. Becky chooses a high price and David chooses a low price.
C. Becky chooses a low price and David chooses a high price.
D. Becky chooses a high price and David chooses a high price.
Answer: A
You might also like to view...
Refer to Figure 12-2. What is the amount of profit if the firm produces Q2 units?
A) It is equal to the vertical distance c to g multiplied by Q2 units. B) It is equal to the vertical distance g to Q2. C) It is equal to the vertical distance c to Q2. D) It is equal to the vertical distance c to g.
If the balance of the current account in the United States is -$900 billion, which of the following is most likely to be true?
A) The balance on the financial account is positive. B) Net foreign investment is positive. C) The trade balance is positive. D) The balance on the capital account is negative.
Consider a firm operating in a competitive market. The firm is producing 40 units of output, has an average total cost of production equal to $5, and is earning $240 economic profit in the short run. What is the current market price?
a. $9 b. $10 c. $11 d. $12
Which of the following strategies will most likely NOT enhance profits in a Bertrand oligopoly?
A. Two-part pricing B. Randomized pricing C. Price matching D. Brand loyalty