3. T dominant strategy for Qu 3. Player B is 4. What is the Nash Equilibrium (NE) (payouts they will they end up at)? Answer in the form (#, #) as in (-10.1) etc. 5. yes or no? Is this a Prisoner's Dilemma game? (i.e. Could each player do better if they cooperated instead? Could they have ended up in a better payout situation for both?) 6. If this is a Prisoner's Dilemma E] game, what is the better payout they could have ended up at? Answer in the form (#, #) as in (-10.1) etc. or NONE if there if this is not a Prisoner's Dilemma. Question 10 6 pts The following shows a pricing game between Allegiant and Delta. Each airline has a choice between offering a fare sale or not offering a fare sale. The resulting prots of each airline are provided, where the rst number in each payoff box equals Allegiant's prot and the second number is Delta's prot. | Delta | Fare Sale No Fan: Sale I Allegiant l Fare Sale 80 500 | No Fare Sale so 700 l g | 800 1. The best response strategy by Delta if Allegiant chooses Fare Sale is Answer either Fare Sale or No Fare Sale. 2. The best response strategy by Delta if Allegiant chooses No Fare Sale is Answer either Fare Sale or No Fare Sale D Question 3 1 pts The short-run prot maximization rule for monopolistic competition is the same as for competitive and monopoly rms. 0 True 0 False D Question 4 2 pts A key characteristic of [Z] oligopolies is ______________ . 0 many buyers and sellers 0 no control over price O no barriers to market entry 0 interdependent decision making Q u 83 Allegiant's dominant strategy .1 is Fare sale or No fare sale? 4. Delta's dominant strategy is Fare sale or No fare sale? 5. Where is the Nash equilibrium (Which payouts do they end up with)? Answer in the form (#, #) as in (80,500) etc. Question 9 6 pts Use the game tree below to answer the following questions. Player A decides whether to move left or right rst, and then Player B decides to move left or right. Remember: the higher the number, the greater the payout. The rst number is Player A's payout, the second, is Player B's. Remember, the higher the payout, the better. (1.1) (10.0) (0,10) (8,8) 1. Is the game above sequential or simultaneous? 2. The dominant strategy (i.e. Is it better for them to choose left or right?) for yer A is D Question 1 2 pts A key characteristic of monopolistic competition is O one seller O differentiated products many barriers to market entry/ exit O homogeneous products Question 2 2 pts Why do monopolistically competitive firms have a demand curve that is more elastic (flatter) than monopolies?D Question 5 3 pts Cartels are agreements between firms to formally on price and output. Cartels overall supply to prices and profits. D Question 6 2 pts All of the following are components of a game in game theory EXCEPT: O strategies O all answers listed are components O players O payoffsD Question 7 2 pts .In games, actions occur at the same time. In games, one player at a time makes a move. D Question 8 2 pts A Prisoner's Dilemma game is O the players are always prisoners O the players cooperate with one another O there is a cooperative option that is better than the Nash Equilibrium 0 there is no option better than the Nash Equilibrium