With homogenous products and firms with the same

Info icon This preview shows pages 8–11. Sign up to view the full content.

View Full Document Right Arrow Icon
13. With homogenous products and firms with the same constant marginal cost and no fixed costs, total output in a Betrand equilibrium is: a) Equal to the competitive output. b) Equal to the monopoly output. c) Between the monopoly and competitive output. d) None of the above. 14. Consider the following payoff matrix for a game played by Players A and B: Player B Make Long Boards (LB) Make Short Boards (SB) Make Long Boards (LB) 30, 30 25, 35 Player A Make Short (SB) 35, 25 20, 20
Image of page 8

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
7 15. Convert the following game for two companies (A and B) choosing whether to sell air conditioners or heaters into sequential form with A moving first. Then identify the statement that is correct from the list below. Firm B Air Conditioner Heater Air Conditioner -3, 2 4, 8 Firm A Heater 10, 3 1, 4 16. Consider the following statements about game theory . Which statement is correct? Player B Left Right Up 101, 101 200, 50 Player A Down 50, 200 1000, 1000
Image of page 9