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Title: What's the dominant strategy for each firm? Post by: druw on Feb 27, 2018 What's the dominant strategy for each firm?
a. Charge a low price b. Charge a high price c. Firm A charge a low price and firm B charge a high price d. Firm A charge a high price and firm B charge a low price QUESTION 2 More risk-averse people will: a. hold fewer risky assets because marginal utility is rapidly diminishing. b. hold fewer risky assets because marginal utility is greater. c. hold fewer risky assets because rates of return are more uncertain. d. hold fewer risky assets because marginal utility is negative. QUESTION 3 A cartel is a situation where firms in the industry a. have an agreement to restrict output. b. agree to produce identical products. c. obey the rules of dominant firm price leadership. d. experience the pain of a kinked demand curve. e. have a barometric price leader QUESTION 4 If the businesses last forever, then the Nash Equilibrium is a. for one firm to charge a HP forever b. for your firm charge a LP when the other firm does c. for each firm to charge HP until the rival does, and then to charge a LP forever. d. for each firm to charge LP until the rival does, and then to charge a HP forever. QUESTION 5 A risk-neutral individual is offered a gamble that promises a gain of 1000 with probability 0.25 and a loss of 300 with probability 0.75 . Given this situation, he or she will: a. definitely take the gamble. b. definitely not take the gamble. c. definitely take the gamble if his or her income is high enough. d. take an action that cannot be determined given the information available. QUESTION 6 Suppose that in a perfectly competitive industry the equilibrium industry quantity is 10,000 units. Suppose that the monopoly output is 5,000 . For a 2-firm Cournot Oligopoly (N =2) known as a duopoly, what is a likely Cournot QUANTITY for the industry? a. 3,000 units b. 5,000 units c. 6,667 units d. 10,000 units e. 15,000 units QUESTION 7 If both firms plan to be in business for 5 years, then the Nash Equilibrium will be a. For each firm charge a LP every year b. For neither firm to charge a LP in early years, but to charge a HP in later years. c. For each firm to charge a HP every year d. For neither firm to charge a HP in early years, but to charge a LP in later years. Title: What's the dominant strategy for each firm? Post by: Maalmb on Feb 27, 2018 Content hidden
Title: Re: What's the dominant strategy for each firm? Post by: Bardia Nikourazm on Mar 5, 2020 Thank you
Title: Re: What's the dominant strategy for each firm? Post by: Mat Zo on Sep 28, 2020 thkans
Title: Re: What's the dominant strategy for each firm? Post by: Joshua Stuart on Jul 24, 2021 thx
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