Refer to the normal-form game of price competition shown below. \(\begin{array}{l} \quad\quad\quad\quad\quad\quad\text { Firm B}\\ \text { Firm A} \begin{array}{|l|l|l|} \hline & \text { C } & \text { D }\\ \hline & & \\ \text { A } & 50,50 & 500-x, 200 \\ \hline & & \\ \text { B } & 100,500-x & 50,50 \\ \hline \end{array}\end{array}\) For what values of x is strategy D strictly dominant for firm B?

A) All x > 450 B) All x 450 B) All x < 450 C) x = 450 D) x < 50

Refer to the payoff matrix below. \(\begin{array}{c} \quad\quad\quad\quad\quad\quad\text { Player 2}\\ \text { Player 1 } \begin{array}{|l|l|l|l|} \hline & \text { t1 } & \text { t2 } & \text { t3 } \\ \hline & & & \\ \mathrm{S} 1 & 20,0 & 15,1 & 5,-100 \\ \hline & & & \\ \mathrm{S} 2 & 20,200 & 10,0 & 5,-50\\ \hline \end{array}\end{array}\) Which of the following pairs of strategies constitutes a Nash equilibrium of the game?

A) S1, t1 B) S1, t2 C) S2, t1 D) S1, t2 and S2, t1 A) S1, t1 B) S1, t2 C) S2, t1 D) S1, t2 and S2, t1

(Multiple Choice)

4.9/5

(34)

(Multiple Choice)

4.8/5

(32)

Showing 141 - 142 of 142