Refer to Table 14 5 If Brawny Juice selects a high price what is Power Fuel \u02b9 s

Refer to table 14 5 if brawny juice selects a high

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87)Refer to Table 14-5.If Brawny Juice selects a high price, what is Power Fuelʹs best strategy andwhat will Power Fuel earn as a result of this strategy?A) Power Fuel will select a high price and earn $12 million.B) Power Fuel will select a low price and earn $8 million.C) Power Fuel will select a high price and earn $16 million.D) Power Fuel will select a low price and earn $16 million.Answer: D87)Diff: 2Page Ref: 463-464/463-464Topic: Business StrategyLearning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies inoligopoliesAACSB: Analytic Skills26
88)Refer to Table 14-5.If the firms cooperate, what prices will they select?88)Diff: 2Page Ref: 463-464/463-464Topic: Game TheoryLearning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies inoligopoliesAACSB: Analytic Skills89)Refer to Table 14-5.If the two firms collude, is there an incentive for either to cheat on thecollusion agreement?89)Diff: 2Page Ref: 468/468Topic: CollusionLearning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies inoligopoliesAACSB: Analytic SkillsTRUE/FALSE. WriteʹTʹif the statement is true andʹFʹif the statement is false.90) Natural resource cartels such as OPEC are inherently unstable because their members operate withexcess capacity and have an incentive to cheat on their output quotas.90)Diff: 2Page Ref: 469-471/469-471Topic: CartelsLearning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies inoligopoliesAACSB: Reflective Thinking91) Because many business situations are repeated games, firms may be able to avoid the prisonerʹsdilemma and implicitly collude to keep prices high.91)Answer:TrueFalseDiff: 2Page Ref: 467-468/467-468Topic: Prisonerʹs DilemmaLearning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies inoligopoliesAACSB: Reflective Thinking92) Firms are more likely to find themselves in a prisonerʹs dilemma in sequential games as opposed tosimultaneous games.92)Diff: 2Page Ref: 467-468/467-468Topic: Prisonerʹs DilemmaLearning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies inoligopoliesAACSB: Reflective Thinking27

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