Use the table, with data for Rocky and Tina, to answer the question. Both Tina and Rocky are ready to buy new phones. The accessories are things like cables. What is the term for the type of game Tina and Rocky are playing? $\text { Table: Tina and Rocky Choose Phones }$ $\begin{array}{|l|l|l|} \hline &{\text { Rocky buys Android. }} & {\text { Rocky buys Apple. }} \\ \hline \text{Tina buys Android.}&\text { Accessories can be shared. } & \begin{array}{l} \text { Each must have separate } \\ \text { accessories. } \end{array} \\ \hline \text{Tina buys Apple.}&\begin{array}{l} \text { Each must have separate } \\ \text { accessories. } \end{array} & \text { Accessories can be shared. } \\ \hline \end{array}$

A) an anti-coordination game B) a one-shot game C) a single equilibrium game D) a coordination game A) an anti-coordination game B) a one-shot game C) a single equilibrium game D) a coordination game D

Use the table with data for Maria and Jose to answer the question. If Jose charges $8, then Maria's best price would be _____, and she would earn _____ $\text { Table: Maria and Jose Produce Strawberry Jam }$ $\begin{array}{|l|l|l|} \hline & {\begin{array}{c} \text { Jose charges } \$ 8 \text { per } \\ \text { jar. } \end{array}} & \text { Jose charges } \$ 4 \text { per jar. } \\ \hline \begin{array}{l} \text { Maria charges } \$ 8 \text { per } \\ \text { jar. } \end{array} & \begin{array}{l} \text { Maria earns } \$ 200 \text {, and } \\ \text { Jose earns } \$ 180 . \end{array} & \begin{array}{l} \text { Maria earns } \$ 50 \text {, and } \\ \text { Jose earns } \$ 280 . \end{array} \\ \hline \begin{array}{l} \text { Maria charges } \$ 4 \text { per } \\ \text { jar. } \end{array} & \begin{array}{l} \text { Maria earns } \$ 300 \text {, and } \\ \text { Jose earns } \$ 40 . \end{array} & \begin{array}{l} \text { Maria earns } \$ 180 \text {, and } \\ \text { Jose earns } \$ 150 . \end{array} \\ \hline \end{array}$

A) $8; $200 B) $8; $50 C) $4; $300 D) $4; $180 A) $8; $200 B) $8; $50 C) $4; $300 D) $4; $180

Use the table with data for an election to answer the question. Tori is running for a government office in an election. Merced and many others want Tori to win and are deciding whether to campaign for Tori. The amount of campaigning will have a significant impact on the outcome of the election. What type of game is being played in Table 11? \[\begin{array}{l} \text { Table: Tori Tries to Win an Election }\\ \begin{array} { | l | l | l | } \hline & { \begin{array} { c } \text { Others do not campaign for } \\ \text { her. } \end{array} } & { \text { Others campaign for her. } } \\ \hline \text { Merced does not campaign. } & \begin{array} { l } \text { Tori loses the election. } \\ \text { Merced and others are } \\ \text { disappointed, but at least they } \\ \text { did not waste time. } \end{array} & \begin{array} { l } \text { Tori loses by a very small } \\ \text { margin. Others feel they } \\ \text { wasted time, but Merced does } \\ \text { not. } \end{array} \\ \hline \text { Merced campaigns. } & \begin{array} { l } \text { Tori loses. Merced feels she } \\ \text { wasted time, but others do } \\ \text { not. } \end{array} & \begin{array} { l } \text { Tori wins the election. } \\ \text { Merced and others feel their } \\ \text { time was spent well. } \end{array} \\ \hline \end{array} \end{array}\]

A) a coordination game with a single equilibrium B) a coordination game with multiple equilibria C) a prisoner's game with a dilemma equilibrium D) an anti-coordination game with multiple equilibria A) a coordination game with a single equilibrium B) a coordination game with multiple equilibria C) a prisoner's game with a dilemma equilibrium D) an anti-coordination game with multiple equilibria

Exam 18: Game Theory and Strategic Choices

(Scenario: Payoff Matrix for Steve's Skateboards and Savannah's Highflyers) Payoff Matrix for Firms X and Y. If Steve were to choose his BEST response, he would:

Free

(Multiple Choice)

5.0/5

(39)

Question 1

Correct Answer:

Verified

B

(Figure: Payoff Matrix for Alex and Sybil) Use Figure: Payoff Matrix for Alex and Sybil. Alex and Sybil are the only producers of frozen yogurt in their town. Every week, each decides how much frozen yogurt to produce for the following week. The figure shows the profit per week earned by their two firms. The BEST response for Alex is:

Free

(Multiple Choice)

4.9/5

(40)

Question 2

Correct Answer:

Verified

B

Use the table, with data for Rocky and Tina, to answer the question. Both Tina and Rocky are ready to buy new phones. The accessories are things like cables. What is the term for the type of game Tina and Rocky are playing? $\text { Table: Tina and Rocky Choose Phones }$ Rocky buys Android. Rocky buys Apple. Tina buys Android. Accessories can be shared. Each must have separate accessories. Tina buys Apple. Each must have separate accessories. Accessories can be shared.

Free

(Multiple Choice)

4.9/5

(33)

Question 3

Correct Answer:

Verified

D

If a check mark is put next to each player's best response in a payoff table, then an outcome cell with a check mark from each player is called:

(Multiple Choice)

4.9/5

(38)

Question 4

Use the table with data for Maria and Jose to answer the question. If Jose charges $8, then Maria's best price would be _, and she would earn _ $\text { Table: Maria and Jose Produce Strawberry Jam }$ Jose charges \ 8 per jar. Jose charges \ 4 per jar. Maria charges \ 8 per jar. Maria earns \ 200 , and Jose earns \ 180. Maria earns \ 50 , and Jose earns \ 280. Maria charges \ 4 per jar. Maria earns \ 300 , and Jose earns \ 40. Maria earns \ 180 , and Jose earns \ 150.

(Multiple Choice)

4.8/5

(37)

Question 5

An analytical approach to considering the BEST action you can take in response to the actions of your rivals is called:

(Multiple Choice)

5.0/5

(39)

Question 6

(Figure: Oligopoly Pricing Strategy in Wireless TV Market I) Use Figure: Oligopoly Pricing Strategy in Wireless TV Market I. In the figure, the BEST response for Sling:

(Multiple Choice)

4.9/5

(27)

Question 7

How can a finitely repeated game be solved?

(Multiple Choice)

4.8/5

(42)

Question 8

(Figure: Payoff Matrix for Alex and Sybil) Use Figure: Payoff Matrix for Alex and Sybil. Alex and Sybil are the only producers of frozen yogurt in their town. Every week, each decides how much frozen yogurt to produce for the following week. The figure shows the profit per week earned by their two firms. In the game's Nash equilibrium, Alex produces _, and Sybil produces _.

(Multiple Choice)

4.8/5

(46)

Question 9

When using the "prune the tree" method on a game tree, the branches and leaves that are removed are the ones that:

(Multiple Choice)

4.9/5

(36)

Question 10

(Table: Nike and Reebok Advertising Game) Use Table: Nike and Reebok Advertising Game. The sneaker industry is dominated by Nike and Reebok, and each firm spends a lot of money on advertising. Suppose each firm is considering a costly television commercial during the World Series. The table shows the payoff matrix of profits that each firm would receive from its advertising decision, given the advertising decision of its rival. Profits in each cell of the payoff matrix are given as (Nike, Reebok). If each firm independently decides whether to advertise, the Nash equilibrium is for Nike _ and Reebok _ during the World Series.

(Multiple Choice)

4.9/5

(36)

Question 11

Use the table with data for an election to answer the question. Tori is running for a government office in an election. Merced and many others want Tori to win and are deciding whether to campaign for Tori. The amount of campaigning will have a significant impact on the outcome of the election. What type of game is being played in Table 11? Table: Tori Tries to Win an Election Others do not campaign for her. Others campaign for her. Merced does not campaign. Tori loses the election. Merced and others are disappointed, but at least they did not waste time. Tori loses by a very small margin. Others feel they wasted time, but Merced does not. Merced campaigns. Tori loses. Merced feels she wasted time, but others do not. Tori wins the election. Merced and others feel their time was spent well.

(Multiple Choice)

4.8/5

(31)

Question 12

(Figure: Payoff Matrix for Antojito and Carolina Reaper) Use Figure: Payoff Matrix for Antojito and Carolina Reaper. The combined profit of Carolina Reaper and Antojito is maximized when Carolina Reaper produces _, and Antojito produces _.

(Multiple Choice)

4.9/5

(35)

Question 13

Two large computer retailers, Best Buy and Circuit City, are considering entering a small town. Each firm can either enter the market or not. The table shows the payoff matrix. Profits in each cell of the payoff matrix are given as (Best Buy's profits, Circuit City's profits). Are there any dominant strategies in the game? If this game is played only once, and each firm decides whether to enter the market independently, what is/are the Nash equilibrium of this game? Explain your conclusions.

(Essay)

4.8/5

(39)

Question 14

Microsoft and HP are close competitors in the personal computer market. Suppose that each year, Microsoft and HP must decide whether to invest in costly research and development (R&D). If both invest in R&D, each will earn $30 million. If neither invests in R&D, each will earn $40 million. If one firm invests, while the other does not, the firm that invests will earn $45 million, and the firm that does not will earn $25 million.

(Essay)

4.8/5

(36)

Question 15

A Nash equilibrium can be identified on a payoff table when:

(Multiple Choice)

4.8/5

(30)

Question 16

Which of the following describes when a first-mover advantage can happen?

(Multiple Choice)

4.7/5

(40)

Question 17

Collusive agreements are typically difficult for businesses to maintain because each firm can increase profits by:

(Multiple Choice)

4.9/5

(30)

Question 18

(Scenario: Payoff Matrix for Steve's Skateboards and Savannah's Highflyers) Use Scenario: Payoff Matrix for Steve's Skateboards and Savannah's Highflyers. If Savannah were to choose her BEST response, she would:

(Multiple Choice)

4.9/5

(32)

Question 19

The tragedy of commons leads to a Nash equilibrium with shared resources that are:

(Multiple Choice)

4.8/5

(42)

Question 20

Exam 18: Game Theory and Strategic Choices

(Scenario: Payoff Matrix for Steve's Skateboards and Savannah's Highflyers) Payoff Matrix for Firms X and Y. If Steve were to choose his BEST response, he would: ​ ​

If a check mark is put next to each player's best response in a payoff table, then an outcome cell with a check mark from each player is called:

An analytical approach to considering the BEST action you can take in response to the actions of your rivals is called:

(Figure: Oligopoly Pricing Strategy in Wireless TV Market I) Use Figure: Oligopoly Pricing Strategy in Wireless TV Market I. In the figure, the BEST response for Sling: ​

How can a finitely repeated game be solved?

When using the "prune the tree" method on a game tree, the branches and leaves that are removed are the ones that:

(Figure: Payoff Matrix for Antojito and Carolina Reaper) Use Figure: Payoff Matrix for Antojito and Carolina Reaper. The combined profit of Carolina Reaper and Antojito is maximized when Carolina Reaper produces _____, and Antojito produces _____. ​

A Nash equilibrium can be identified on a payoff table when:

Which of the following describes when a first-mover advantage can happen?

Collusive agreements are typically difficult for businesses to maintain because each firm can increase profits by:

(Scenario: Payoff Matrix for Steve's Skateboards and Savannah's Highflyers) Use Scenario: Payoff Matrix for Steve's Skateboards and Savannah's Highflyers. If Savannah were to choose her BEST response, she would: ​ ​

The tragedy of commons leads to a Nash equilibrium with shared resources that are:

The Core Principles of Economics

Demand: Thinking Like a Buyer

Supply: Thinking Like a Seller

Equilibrium: Where Supply Meets Demand

Elasticity: Measuring Responsiveness

When Governments Intervene in Markets

Welfare and Efficiency

Gains From Trade

International Trade

Externalities and Public Goods

Labor Demand and Supply

Wages, Workers, and Management

Inequality, Social Insurance, and Redistribution

Market Structure and Market Power

Entry, Exit, and Long-Run Profitability

Business Strategy

Sophisticated Pricing Strategies

Decisions Involving Uncertainty

Decisions With Private Information

Sizing up the Economy Using Gdp

Economic Growth

Unemployment

Inflation and Money

Consumption and Saving

Investment

The Financial Sector

International Finance and the Exchange Rate

Business Cycles

IS-MP Analysis: Interest Rates and Output

Phillips Curve

The Fed Model: Linking Interest Rates, Output, and Inflation

Aggregate Demand and Aggregate Supply

Monetary Policy

Government Spending, Taxes, and Fiscal Policy

Appendix: Aggregate Expenditure and the Multiplier

Filters

(Scenario: Payoff Matrix for Steve's Skateboards and Savannah's Highflyers) Payoff Matrix for Firms X and Y. If Steve were to choose his BEST response, he would:

(Figure: Oligopoly Pricing Strategy in Wireless TV Market I) Use Figure: Oligopoly Pricing Strategy in Wireless TV Market I. In the figure, the BEST response for Sling:

(Figure: Payoff Matrix for Antojito and Carolina Reaper) Use Figure: Payoff Matrix for Antojito and Carolina Reaper. The combined profit of Carolina Reaper and Antojito is maximized when Carolina Reaper produces _, and Antojito produces _.

(Scenario: Payoff Matrix for Steve's Skateboards and Savannah's Highflyers) Use Scenario: Payoff Matrix for Steve's Skateboards and Savannah's Highflyers. If Savannah were to choose her BEST response, she would: