Complete the table.

Output Price FC VC TC TR PROFIT/LOSS

0 $90 $30 $0 __ _ _

1 80 _ 40 _ _ _

2 70 _ 80 _ _ -

3 60 _ 140 _ _ _

4 50 _ 220 _ _ _

5 40 _ 320 _ _ _

6 30 _ 440 _ _ _

7 20 _ 580 _ _ _

What level of output maximizes profit or minimizes loss?

Should this firm operate or shut down in the short-run? Why?

Suppose that Wal-World and Tarbo are independently deciding whether to implement a new bar code technology or use the existing bar code. It is less costly for their suppliers to use one system and the following payoff matrix shows the profits per year for each company resulting from the interaction of their strategies.

Existing barcode technology- Walmart earns 4 billion/ Tarbo earns 3 billions , Walmart earns 1 billion/Tarbo earns 2 billion

New Barcode technology- Wal-mart earns 3 billion/ Tarbo earns 1 billion, Walmart earns 2 billion/Tarbo erans 4 billion

Description of the graph: The payoff matrix shows two oligopoly companies: Wal-World and Tarbo, which are competing to increase their market share and payoffs. They have two strategies, which are playing existing bar code and new bar code. The two companies get different payoffs when they play different strategies.)

Does Wal-World have a dominant strategy? Briefly explain.

Does Tarbo have a dominant strategy? Briefly explain.

Is there a Nash Equilibrium in this game? Briefly explain.