xcquiz3-0301 - d. Both a and b 3. When firms in an...

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ECON 251 XC Quiz #3 Answers November 15, 2007 1. Based on the payoff matrix below, if Kodak and Polaroid both invest in R&D, Polaroid will earn ___________ in profit. Pola roid ’s  Stra tegies Kod ak’s Stra tegies  $15  $15  $20  $25  $10  $20  $25  $10  a. $25 million b. $10 million c. $15 million d. $20 million 2. The Nash equilibrium(a) of the game above is (are) a. b. c.
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Unformatted text preview: d. Both a and b 3. When firms in an oligopoly collude, they form a a. team b. tax shelter c. cartel d. perfectly competitive firm 4. When there are negative production externalities in a market, at the market equilibrium level of output a. MB = MSC b. MB > MSC c. MB < MSC d. allocative efficiency is satisfied 5. The next Econ 251 lecture will be a. Tuesday, November 20 b. Thursday, November 22 c. Tuesday, November 27 d. Tuesday, December 4...
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This note was uploaded on 04/27/2011 for the course ECON 251 taught by Professor Blanchard during the Spring '08 term at Purdue University-West Lafayette.

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xcquiz3-0301 - d. Both a and b 3. When firms in an...

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