Homework Answers
For firm 1, the dominant strategy is to charge the high price because it generates a profit of 4 and 14 which is strictly more than 0 and 12
Given, firm 1 will charge high price, it is best for the firm 2 to charge high price. Thus, their price will match
So, the statement is False, that will match. (Ans)
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mpts: Text Question 1.4 Question Help O Two firms face the following payoff matrix shown to...
Question 43 10 pts (10 marks: 1 mark each) Use the following payoff matrix for a...
Question 43 10 pts (10 marks: 1 mark each) Use the following payoff matrix for a 2-firm oligopoly to answer the questions below Firm A: High Price Low Price A-1000 A-1250 High Price B = 1000 B = 300 Firm B: A-300 A = 700; Low Price B-1250 B-700 a. If the two firms above collude, the profits for each of the 2 firms would be: Firm A Profits Firm B Profits a. If the two firms above collude, the...
2) Answer the next question based on the following payoff matrix for a duopoly in which...
2) Answer the next question based on the following payoff matrix for a duopoly in which the numbers indicate the profit in thousands of dollars for a high-price or a low-price strategy. Firm X High Price Low Price |? | x = s625 | x = $725 >- |- Y = $625 | Y = $475 2 f both fimscollde to maximize joint profits,the total profits for the two firms will be A) S1,500,000. B) S1,400,000. C) S1,250,000. D) S1,200,000.
(10 marks: 1 mark each) Use the following payoff matrix for a 2-firm oligopoly to answer...
(10 marks: 1 mark each) Use the following payoff matrix for a 2-firm oligopoly to answer the questions below Firm A: High Price Low Price A = 1000: A = 1250; High Price B = 1000 B = 300 Firm B: A = 300; A = 700; Low Price B = 1250 B = 700 a. If the two firms above collude, the profits for each of the 2 firms would be: Firm A Profits Firm B Profits b. Suppose...
Question 19 10 pts 19. Answer the next question based on the payoff matrix for a...
Question 19 10 pts 19. Answer the next question based on the payoff matrix for a two-firm oligopoly where the numbers represent the firms' respective sales given each of their pricing strategies: FIRM X Strategies: High-price Low Price High-price X = $625,000 X = $725,000 Y= $625,000 Y = $275,000 Low-price X = $275,000 X = $400,000 Y = $725,000 Y= $400.000 FIRMY If both firms were doing a high-price strategy and then one firm cuts prices but the other...
C18.3-20 The table on the right shows the payoff matrix for two firms operating a zipline...
C18.3-20 The table on the right shows the payoff matrix for two firms operating a zipline duopoly in a resort town. If the firms can collude, industry profits equal both firms would offer and rides each. Home O A. $10,000; 320 O B. $5,000; 60 Explo O C. $6,000; 100 O D. $5,000; 100 Notific E. $10,000; 60 Firm Y's s Messa Вookn ists Profile omplete) HW Score: 35%, 7 of Question Help Firm X's strategies 100 rides 60 rides...
6. Using a payoff matrix to determine the equilibrium outcome Suppose there are only two firms...
6. Using a payoff matrix to determine the equilibrium outcome Suppose there are only two firms that sell Blu-ray players: Movietonia and Videotech. The following payoff matrix shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its players. Videotech Pricing High Low High 9,9 2, 15 Movietonia Pricing Low 15, 2 8,8 For example, the lower-left cell shows that Movietonia prices low and Videotech prices high, Movietonia...
Consider the game represented by the payoff matrix below. Two firms are colluding and setting high...
Consider the game represented by the payoff matrix below. Two firms are colluding and setting high 3. prices. Each of the firms can apply for leniency with the antitrust authority or stay silent If a firm applies for lenciency and becomes a whistleblower and the other firm does not, the whistleblower receives a reward of R. If both firms apply for lenciency and become whistleblowers, they receive half of the reward. If both firms stay silent, the the antitrust authority...
6. Using a payoff matrix to determine the equilibrium outcome Suppose there are only two firms...
6. Using a payoff matrix to determine the equilibrium outcome Suppose there are only two firms that sell smartphones: Flashfone and Pictech. The following payoff matrix shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its phones. Pictech Pricing High High Low Flashfone Pricing Low , 15 8,8 11, 112 15,2 For example, the lower-left cell shows that if Flashfone prices low and Pictech prices high, Flashfone...
The table below is the payoff marrix for a simple two-firm game Firms A and B...
The table below is the payoff marrix for a simple two-firm game Firms A and B are bidding on a government contract and each f's bid is not known by the other form. Each firm can bid other $14.000 or 55.000 The cost of completing the project for each firm is 53.000 The low bid firm will win the contractat its stated price the high dem wilgot nothing the two bids are equal, the two firms wil split the price...
Suppose there are only two firms that sell smartphones: Flashfone and Pictech. The following payoff matrix...
Suppose there are only two firms that sell smartphones: Flashfone and Pictech. The following payoff matrix shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its phones. Pictech Pricing High Low Flashfone Pricing High 8, 8 4, 13 Low 13, 4 7, 7 For example, the lower-left cell shows that if Flashfone prices low and Pictech prices high, Flashfone will earn a profit of $13 million, and...
Question 43 10 pts (10 marks: 1 mark each) Use the following payoff matrix for a 2-firm oligopoly to answer the questions below Firm A: High Price Low Price A-1000 A-1250 High Price B = 1000 B = 300 Firm B: A-300 A = 700; Low Price B-1250 B-700 a. If the two firms above collude, the profits for each of the 2 firms would be: Firm A Profits Firm B Profits a. If the two firms above collude, the...
2) Answer the next question based on the following payoff matrix for a duopoly in which the numbers indicate the profit in thousands of dollars for a high-price or a low-price strategy. Firm X High Price Low Price |? | x = s625 | x = $725 >- |- Y = $625 | Y = $475 2 f both fimscollde to maximize joint profits,the total profits for the two firms will be A) S1,500,000. B) S1,400,000. C) S1,250,000. D) S1,200,000.
(10 marks: 1 mark each) Use the following payoff matrix for a 2-firm oligopoly to answer the questions below Firm A: High Price Low Price A = 1000: A = 1250; High Price B = 1000 B = 300 Firm B: A = 300; A = 700; Low Price B = 1250 B = 700 a. If the two firms above collude, the profits for each of the 2 firms would be: Firm A Profits Firm B Profits b. Suppose...
Question 19 10 pts 19. Answer the next question based on the payoff matrix for a two-firm oligopoly where the numbers represent the firms' respective sales given each of their pricing strategies: FIRM X Strategies: High-price Low Price High-price X = $625,000 X = $725,000 Y= $625,000 Y = $275,000 Low-price X = $275,000 X = $400,000 Y = $725,000 Y= $400.000 FIRMY If both firms were doing a high-price strategy and then one firm cuts prices but the other...
C18.3-20 The table on the right shows the payoff matrix for two firms operating a zipline duopoly in a resort town. If the firms can collude, industry profits equal both firms would offer and rides each. Home O A. $10,000; 320 O B. $5,000; 60 Explo O C. $6,000; 100 O D. $5,000; 100 Notific E. $10,000; 60 Firm Y's s Messa Вookn ists Profile omplete) HW Score: 35%, 7 of Question Help Firm X's strategies 100 rides 60 rides...
6. Using a payoff matrix to determine the equilibrium outcome Suppose there are only two firms that sell Blu-ray players: Movietonia and Videotech. The following payoff matrix shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its players. Videotech Pricing High Low High 9,9 2, 15 Movietonia Pricing Low 15, 2 8,8 For example, the lower-left cell shows that Movietonia prices low and Videotech prices high, Movietonia...
Consider the game represented by the payoff matrix below. Two firms are colluding and setting high 3. prices. Each of the firms can apply for leniency with the antitrust authority or stay silent If a firm applies for lenciency and becomes a whistleblower and the other firm does not, the whistleblower receives a reward of R. If both firms apply for lenciency and become whistleblowers, they receive half of the reward. If both firms stay silent, the the antitrust authority...
6. Using a payoff matrix to determine the equilibrium outcome Suppose there are only two firms that sell smartphones: Flashfone and Pictech. The following payoff matrix shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its phones. Pictech Pricing High High Low Flashfone Pricing Low , 15 8,8 11, 112 15,2 For example, the lower-left cell shows that if Flashfone prices low and Pictech prices high, Flashfone...
The table below is the payoff marrix for a simple two-firm game Firms A and B are bidding on a government contract and each f's bid is not known by the other form. Each firm can bid other $14.000 or 55.000 The cost of completing the project for each firm is 53.000 The low bid firm will win the contractat its stated price the high dem wilgot nothing the two bids are equal, the two firms wil split the price...
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