Homework Answers
Nash equilibrium is a strategy profile such that for each player given strategy, it is best response. Nash equilibrium is a set of strategies such that each player is doing their best given the strategy of other player.
If Greenco chooses to charge Low price then best response of Ajax is to charge Low price because it gives Ajax payoff of $ 4 million.
If Ajax chooses to charge low price then best response of Greenco is to charge Low price.
Therefore, (Low price; Low price) is the Nash Equilibrium.
($ 4 million; $ 4 million) is the nash equilibrium.
Total industry profit = 4 million + 4 million = $ 8 million
Answer is D) $ 8 million
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Refer to figure at right, which represents a duopoly industry. What would be the likely total...
Refer to the figure at right and Greengo are oligopolists. Above you are given the payoff...
Refer to the figure at right and Greengo are oligopolists. Above you are given the payoff mat for the two firms giving the payoff associated with different pricing strategies. What is the dominant strategy for Greenco? Ala's Price High Low O A. There is no best strategy OB. High price O C. Low price O D. Not enough information is given to determine the best strategy $5 million $7 milion $5 million 2 million Greenco's Pri $2 million $4 million...
CC 8.2.B.2 Que: The adjacent payoff matrix has how many pure-strategy Nash equilibria? Firm A (A)...
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Question 9 (2 points) Figure 17-5. Two companies, ABC and QRS, are sellers in the same...
Question 9 (2 points) Figure 17-5. Two companies, ABC and QRS, are sellers in the same market. Each company decides whether to charge a high price or a low price. In the figure, the dollar amounts are payoffs and they represent annual profits for the two companies. ABC's Decision Low price High price ABC's profit = $10 million ABC's profit - $14 reallion High price ORS's profit - $10 million QRSs profit - $4 million QRS'S Decision ABC's profit -...
Refer to the figure below. During high-peak times, what price-quantity combination should the firm charge to...
Refer to the figure below. During high-peak times, what price-quantity combination should the firm charge to maximize profit? MC DHigh MR High MRLow Drow O A) P1 and Q3 OB) P2 and Q3 OC) P1 and Q2 OD) P4 and Q3
5. Consider a version of the Cournot duopoly game, where firms 1 and 2 simul taneously...
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which one should I choose？ why？ Table 16-2 In the following duopoly game, the two firms...
which one should I choose？ why？
Table 16-2 In the following duopoly game, the two firms can either set the price of their product high or low. The game is represented in the table below. Firm B High Price High Price Firm A gets $1000 Firm B gets $1000 Firm A gets $800 Firm B gets $800 Low Price Firm A get $1250 Firm B gets $1100 Firm A gets $900 Firm B gets $900 Firm A Low Price Refer...
a The industry A representative firm MC a 9 9 ATC AVC 9 Price (5) Price...
a The industry A representative firm MC a 9 9 ATC AVC 9 Price (5) Price (5) 6 D2 D: Bushels of wheat 101213 15 Bushels of wheat f demand for wheat is D then a profit maximizing firm will produce units and earn O A. 10; negative profits OC. 0; negative profits OB. 12; positive profits OD. 5, zero profits Click to select your answer.
QUESTION 3 Figure Price Supply P K I P" P B M N Demand Quantity Refer...
QUESTION 3 Figure Price Supply P K I P" P B M N Demand Quantity Refer to Figure. If the government imposes a tax size of P- P" in the above market then the area L+M+Y represents a. consumer surplus after the tax. producer surplus after the tax. Cconsumer surplus before the tax. producer surplus before the tax. QUESTION 4 4 point Figure Supply Dennd Quantity Q1 02 Q3 Q Qs Refer to Figure. If the government impose a tax...
both refer to figure 2 please answer both Figure 2 Refer to figure 2. if full...
both refer to figure 2 please answer both
Figure 2 Refer to figure 2. if full employment occurs at Athen aggregate demand is: Price Level Select one: O a. Too small causing unemployment O b. Too great causing Inflation O c. Too great causing unemployment Od just right AD Nothing selected Select an object or text to format Des 12 ai Q: 0 Real GDP Not yet anwered Points out of 100 Puesto Refer to figure 2.1 full employment occurs...
econ 211 A Question 3 Refer to Figure 7-2 Which area represents the increase in consumer...
econ 211
A Question 3 Refer to Figure 7-2 Which area represents the increase in consumer surplus when the price falls from P1 to P2? ABD ACG DFG BCGD Question 4 Refer to Figure 10-1 Supply esc # $ % & 2 3 4 5
Refer to the figure at right and Greengo are oligopolists. Above you are given the payoff mat for the two firms giving the payoff associated with different pricing strategies. What is the dominant strategy for Greenco? Ala's Price High Low O A. There is no best strategy OB. High price O C. Low price O D. Not enough information is given to determine the best strategy $5 million $7 milion $5 million 2 million Greenco's Pri $2 million $4 million...
CC 8.2.B.2 Que: The adjacent payoff matrix has how many pure-strategy Nash equilibria? Firm A (A) Set high price Set low price O A. Three OB. One OC. Zero OD. Two Set high price A: $8 million B: $4 million Firm B (B) A: $7 million B: $9 million A: $5 million B: $5 million Set low price A: $4 million B: $6 million
Question 9 (2 points) Figure 17-5. Two companies, ABC and QRS, are sellers in the same market. Each company decides whether to charge a high price or a low price. In the figure, the dollar amounts are payoffs and they represent annual profits for the two companies. ABC's Decision Low price High price ABC's profit = $10 million ABC's profit - $14 reallion High price ORS's profit - $10 million QRSs profit - $4 million QRS'S Decision ABC's profit -...
Refer to the figure below. During high-peak times, what price-quantity combination should the firm charge to maximize profit? MC DHigh MR High MRLow Drow O A) P1 and Q3 OB) P2 and Q3 OC) P1 and Q2 OD) P4 and Q3
5. Consider a version of the Cournot duopoly game, where firms 1 and 2 simul taneously and independently select quantities to produce in a market. The quantity selected by firm i is denoted q, and must be greater than or equal to zero, for i -1,2. The market price is given by p - 100 - 2q Suppose that each firm produces at a cost of 20 per unit. Further, assume that each firm's payoff is defined as its profit....
which one should I choose？ why？
Table 16-2 In the following duopoly game, the two firms can either set the price of their product high or low. The game is represented in the table below. Firm B High Price High Price Firm A gets $1000 Firm B gets $1000 Firm A gets $800 Firm B gets $800 Low Price Firm A get $1250 Firm B gets $1100 Firm A gets $900 Firm B gets $900 Firm A Low Price Refer...
a The industry A representative firm MC a 9 9 ATC AVC 9 Price (5) Price (5) 6 D2 D: Bushels of wheat 101213 15 Bushels of wheat f demand for wheat is D then a profit maximizing firm will produce units and earn O A. 10; negative profits OC. 0; negative profits OB. 12; positive profits OD. 5, zero profits Click to select your answer.
QUESTION 3 Figure Price Supply P K I P" P B M N Demand Quantity Refer to Figure. If the government imposes a tax size of P- P" in the above market then the area L+M+Y represents a. consumer surplus after the tax. producer surplus after the tax. Cconsumer surplus before the tax. producer surplus before the tax. QUESTION 4 4 point Figure Supply Dennd Quantity Q1 02 Q3 Q Qs Refer to Figure. If the government impose a tax...
both refer to figure 2 please answer both
Figure 2 Refer to figure 2. if full employment occurs at Athen aggregate demand is: Price Level Select one: O a. Too small causing unemployment O b. Too great causing Inflation O c. Too great causing unemployment Od just right AD Nothing selected Select an object or text to format Des 12 ai Q: 0 Real GDP Not yet anwered Points out of 100 Puesto Refer to figure 2.1 full employment occurs...
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A Question 3 Refer to Figure 7-2 Which area represents the increase in consumer surplus when the price falls from P1 to P2? ABD ACG DFG BCGD Question 4 Refer to Figure 10-1 Supply esc # $ % & 2 3 4 5
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