Complete Questions.
Lionel Hutz Law Firm has Select one: a. a dominated strategy: never choose ertising if Chiles chooses high, and never choose a high level of advertising If Chiles chooses low. b. no dominant strategy since Hutz profits are earned after profits are earned by Chiles. c. a dominant strategy: choose a low O d. a dominant strategy: choose a high level of advertising. Where is the Nash equilibrium outcome? Select one: @ a. Both choose low with Chiles getting a slightly larger profit. O b. Chiles choose high and Hutz since Hutz has a dominant strategy while Chiles has a dominated strategy. O c. Both choose high and combined profit. d. Chiles choose low and Hutz choose high because Hutz's low strategy is dominated. Kramerica Industries and Vandelay industries are two companies that make pricing decisions (high or low). Because of different schedules for their annual meetings, every year Kramerica makes its pricing decision first, then Vandelay makes its decision. The game tree looks like this: Payoffs Kramerica; Vandelay high Vandelay $20,000; $8,500 high 2 low $16,000; $9,700 Kramerica 1 high Vandelay $23,000; $7,300 low low $14,000; $6,800 A game tree showing decisions between Kramerica and Vandelay . Kramerica makes the first choice at node 1, choosing either high or low. If Kramerica chooses high, Vandelay (at node 2) chooses either high (in which case Kramerica earns $20,000 and Vandelay earns $8,500) or low (in which case Kramerica earns $16,000 and Vandelay earns $9,700). If Kramer andelay (at another node 2) chooses either high (in which case Kramerica earns $23,000 and Vandelay earns $7,300) or low (in which case Kramerica earns $14,000 and Vandelay earns $6,800). Using backward induction, Kramerica presumes that if it chooses high, Vandelay will choose Vandelay has Select one: O a. a dominant strategy of choosing low. O b. a dominant strategy of choosing high. O c. a strategy of choosing low if d. a strategy of choosing high if Kramerica chooses high, and low if Kramerica chooses low. The Nash equilibrium outcome is for Kramerica to choose_ and then Vandelay to choose_ Select one: a. low; low b. high: low O c. low, high d. high; high While they may be used to better itching and sale-price guarantees? Select one: a. To reduce their fixed costs. O b. To make their products se c. They are implicit ways firms can monitor each other's pricing and better cooperate with each other. O d. To better conceal their pricing behavior from their rivals.In a monopolistically competitive market, Select one O a. firms produce relatively close (but not perfect) substitutes. O b. it is prohibitively expensive for new firms to enter. O c. one firm has a significant advantage in terms of market share compared to the other firms. O d. every firm's demand curve is equivalent to every other firm's demand curve A monopolistic competitor is similar to a monopolist in that Select one: O a. both earn positive economic profit in the long run. O b. both are able to enforce significant entry barriers against potential competitors. O c. both are able to maximize their per-unit profit margin. O d. both can set price above marginal cost. In the long run, monopolistically competitive firms will Select one O a. deter entry of new firms and thus restrict market supply. O b. break even O c. increase the amount of substitute products produced in the industry. d. set price equal to marginal cost and thus earn normal profit. erwes and costs (sall 200 600 A graph showing demand (D) and marginal revenue (M\\ R), average total cost (ATC), average variable cost (A V Cry, and short-run marginal cost (A CO. with quantity of output (Q% on the horizontal axis and revenue and costs in dollars on the vertical axis. D and D - 825, and ATC - $30. At Q - 450, MR is negative. D. AVC. and MC all intersect at $17, and ATC - $26. At Q - 560. MR is negative. D- $13. AVC - $17. and MC - ATC at $26. If the firm decided to produce 200 units of output, what hue and the price? Select one: o a MR - $20. P- $30 D. MR - $20. P- $20 O c. MR - $0, P - $20 o d MR - $20, P-$7.50 in the graph above, the firm's opt Select one: a $25: 300 units b. $20: 250 units o c. $10, 300 units d. 530: 350 units n the graph above, the firm in the short run would be elect one: a. earning a loss and should shut down. o b. earning a loss but should stay open. c. earning positive profit d. breaking even
