Chapter 13 & 14 Quiz X Chapter 13 & 14 Quiz X Course Hero X G In the long run, monopolistically x + X C A mylab.pearson.com/Student/PlayerTest.aspx?testId=249366734 Economics 1001 - Section 5 - Online - Speicher Kyla Rose ? = Quiz: Chapter 13 & 14 Quiz Question 8 of 12 This quiz: 15 point(s) possible This question: 1 point(s) possible Submit quiz Question list K Consider a market with two firms, Target and Wal-Mart, that sell CDs in their music department. Both stores must choose whether to charge a high price ($20) or a low price ($17) for the new Miley Cyrus CD. Question 5 These price strategies with corresponding profits are depicted in the payoff matrix. Target's profits are in red and Wal-Mart's are in blue. Target O Question 6 Target's dominant strategy is to pick a price of $]. Price = $20 Price = $17 Wal-Mart's dominant strategy is to pick a price of $. $7,000 $1,500 Price = $20 O Question 7 What is the Nash equilibrium for this game? $7,000 $12,000 O A. The Nash equilibrium is for Target to choose a price of $17 and Wal-Mart to Wal - Mart choose a price of $20. $12,000 $3,500 O Question 8 O B. The Nash equilibrium is for Target to choose a price of $20 and Wal-Mart to Price = $17 choose a price of $17. $1,500 $3,500 O C. The Nash equilibrium is for Target and Wal-Mart to both choose a price of $20. O Question 9 O D. The Nash equilibrium is for Target and Wal-Mart to both choose a price of $17. O E. A Nash equilibrium does not exist for this game. O Question 10 Next OM Apr 6 7:22 8