Question

struggling with problems 6-11 please show me how to come up with the answers so I can learn how to do these problems

XYZ's Use TABL above Sor qestions 5 to 1. ABC sets a high price, wbat peice should xyZ sect And whwil Xs pay oqpal 6. If cts a low İhce, what prie Ir XYZ sets a 8. What is XYZs domimant stranegy 9. What is ABCs dominant straliegy 10. What is the Nash Equilibrium of this price-setting same I1. Which of the following statemments is comect? 7. t sets a high price, what price should AlBC set Asdwhat will ABC's payoff eqa that (a) ABC can potentially can, ts highest possible profit if İk pruduces a high level of output, and reason it is a dominant strategy for ABC to prodace a high level of ounput (b) The highest possible combined profit for the two firus oocurs when both peoduce a low level of output, and for that reason pracing a low level of oupot is a dokegy for hoth fims (c) Regardless of the strategy pursaed by ABC. XYZ's best strategy is to produce a high level of ouln and for that reason proxhucing a high level of output is a dominanl strshegy for XYZ (d) ABC should produce a high level of oiput when XYZ produces a tow level of oueput, and ABC should produce a low level of output when XYZ produces a high level of otput. 12. A dominant stralegy is one that (a) makes every player better od. (b) makes at least one player betier off without hurting the competitiveess of wny other player (d) is best for the player, regardless of what strategies other players fellow (e) increases the total payoff for one player at the expense of the other player 13. Game theory is necessary for understanding (a) all market structures. (b) competition and oligopoly, but it is not necessary for understanding monopoly. (ek monopoly and oligopoly, but it is not necessary for wxlerstanding perfeet competition. 心oligopoly, but it is not necessary for understanding moopoly or perfect competition.

Answer 1

Da AB C 2 12