Exam 7: Between the Extremes: Interaction and Strategy

The figure given below represents the output choices of each of the two oligopolists, given the choices of its competitor.QA and QB are the quantities of output produced by Producer A and Producer B.The marginal cost of production is zero for both producers. -Refer to Figure .Suppose the government imposes a tax of $1.5 on each unit of A's output.Which of the following changes in the total output will be observed under Cournot equilibrium?

The following matrix represents the payoffs to two producers, each making a strategic choice either to keep the output at 5 units or at 10 units. -Refer to Table .Assume that the law allows players (firms of equal sizes) in Table 7-1 to make enforceable agreements.Which of the following agreements are they likely to form?

In finitely repeated price-fixing game, the dominant strategy of each player is to break the agreement on every play.

Which of the following factors can delay the entry of new competitive firms into the oligopoly market characterized by a dominant firm and some fringe firms?

What is an ascending-value auction?

Which of the following games will have a solution in mixed strategies?