Question

can you answer questions 7, 10, 11 and 13. thanks!

Question Completion Status: QUESTION7 Refer to the following figure showing the reaction functions of oligopoly firms A and B OR, BR Bs Advertising In Nash equilibrium, both firms are maximizing their own profits given the level of advertising expected to be undertaken by the other firm O firm B can increase its profit by unilaterally increasing its level of advertising O firm A can increase its profit by unilaterally increasing its level of advertising. O both b and c. all of the above. Click Save and Submit to save and submit. Click Save All Anawers to save all answers. Save IXAM ns.buffalo.edu/webap jsp?course assessment id-21756318ccourse id 160433 1 * Question Completion Status: QUESTION 10 Refer to the following figure showing the reaction functions of oligopoly firms A and B. BR 0 1 23 45678910 If firm A anticipates that firm B will run 3 ads, then firm A should run profit. O 2 O 6.5 ads in order to maximize its own Click Save and Submit to save and submit. Click Save All Answers to save all answers ns.buffal course assessment id 217563 1&course id 160433 1&conten s Question Completion Status: QUESTION 11 Use the following payoff table for Hardaway Corporation and Paxton Industries. These two firms must make simultaneous pricing decisions. They can choose low, medium, or high prices Paxton Industries Meditum $45, $20 $40, $40 538, $52 530, 530 Low High $32, $20 $45, 35 Low $30, $30 Hardaway Corp. | Medium | D (20 | E | F (a ,,a High $15, $48 Payoffs in thousands of dollars of monthly profts For the simultaneous pricing decision facing Hardaway Corporation and Paxton Industries, O cell E is the equilibrium pricing decision. O cell A is the likely outcome of the pricing decision. cell I is a strategically stable pricing outcome. O both firms pricing low is a Nash equilibrium. O both b and d QUESTION 12 Click Save and Submit to save and submit. Click Save All Answers to save all answers tps://ublearns.buffako.edu/webapps/assessment/take/launchjsp?cour se as v Question Completion Status: O no other set of actions could make ALL participants better off O both a and b O all of the above QUESTION 13 What is the most important characteristic of oligopoly? O low barriers to entry O interdependence of profits O firms have market power O product differentiation O none of the above QUESTION 14 Cooperation is achieved in an oligopoly market when O some of the firms in the market decide not to cheat. O most of the firms in the market decide not to cheat. o at least one of the firms in the market decide not to cheat. O all of the firms in the market decide not to cheat Click Save and Submit to save and submit. Cliek Save All Answers to save all answers.

Answer 1

Answer 7:

Option A. At the point of Nash equilibrium, both the firms are maximizing their own profits given the level of advertising expected to be undertaken by another firm.

Answer 10:

Option A. Given the reaction curve of firm A. number of ads to be run by firm A is equal to 2.

Answer 11:

Option E. Given the pay off matrix above, the simultaneous Nash Equilibrium occurs when both are keeping the prices low. It is also stable equilibrium.

Answer 13:

Option B. Interdependence of profits is the most important characteristic of an oligopoly.