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Title: Does the Nash equilibrium yield maximum profit? Post by: mlevans624 on Feb 27, 2018 Does the Nash equilibrium yield maximum profit?
a. Yes, because they are each getting the maximum payoff b. No, because they could do better by pricing high c. Yes, because they are both making sales d. No, because they both hate selling ice cream QUESTION 2 Jim has estimated elasticity of demand for gasoline to be -0.7 in the short-run and -1.8 in the long run. A decrease in taxes on gasoline would: a. lower tax revenue in both the short and long run. b. raise tax revenue in both the short and long run. c. raise tax revenue in the short run but lower tax revenue in the long run. d. lower tax revenue in the short run but raise tax revenue in the long run. QUESTION 3 What is the Nash equilibrium of this game? a. Both the vendors price high b. Both the vendors price low c. Vendor A prices high, vendor B prices low d. Vendor B prices high, vendor A prices low QUESTION 4 If the price elasticity of demand is -0.8 and the firm decreases price, revenue will a. Increase b. Decrease c. Stay constant d. become zero, they would lose all their customers QUESTION 5 If the roommates played the game repeatedly where one roommate not cleaning this time would trigger the other roommate not cleaning next time, the Nash equilibrium is most likely to be a. John cleans, Joe doesn't b. Joe cleans, John doesn't c. Both of them clean d. Neither of them clean QUESTION 6 If the price elasticity of demand is -0.8 and the firm increases price, revenue will a. Increase b. Decrease c. Stay constant d. become zero, they would lose all their customers Title: Does the Nash equilibrium yield maximum profit? Post by: Katala169 on Feb 27, 2018 Title: Does the Nash equilibrium yield maximum profit? Post by: mlevans624 on Feb 27, 2018 :-] I'm impressed
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