03.11 Oligopoly - FRQ#1 Out of a total of 6 possible points this student earned a total of 4 points In Part A the student earned two points out of two

03.11 Oligopoly - FRQ#1 Out of a total of 6 possible points...

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FRQ #1 Out of a total of 6 possible points, this student earned a total of 4 points In Part A the student earned two points out of two points. One point was awarded for stating that north will be better for Blue Mart. The other point was awarded to the student because they explained that Blue Mart earns a higher profit by locating north than it does by locating south ($4,000 vs $1,000) In Part B the student earned one point out of two points. This is due to the fact that the student failed to state that choosing south is not a dominant strategy for Red Shop, costing them a point. The student, however, did explain that Red Shop’s best strategy depends on Blue Mart’s move, since wherever Blue Mart chooses to go, Red Shop will always earn more money. In Part C the student earned zero points out of one point. This is due to the fact that the student failed to state that Red Shop chooses south and Blue Mart chooses north.
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