Consider a oligopoly with two rms. Each firm has constant marginal cost of 3 dollar per unit and zero fixed costs. Suppose the market demand
Consider a oligopoly with two rms. Each firm has constant marginal cost of 3 dollar per unit and zero fixed costs. Suppose the market demand curve is P = 15 - Q, where Q = 01 + 02 is the sum of the quantities produced by both rms. Suppose each rm can produce either 1, 2, 3, or 4 units. Which of the following is a Nash equilibrium outcome? 0 Each rm produces1 unit. 0 Each rm produces 3 units. 0 Each rm produces 4 units. O Each rm produces 2 units. C D A 4, 2 2, 1 B 1, 1 1, 3 Consider the game represented by the above matrix. Player 1's actions are A and B, and player 2's actions are C and D. In each cell, the first number is player 1's payoff, and the second number is player 2's payoff Which of the following is a Nash equilibrium of the game? O Player 1 plays A and Player 2 plays D. O Player 1 plays B and Player 2 plays D. O Player 1 plays B and Player 2 plays C. O Player 1 plays A and Player 2 plays C.C D A 4,2 2,1 B 1,1 1,3 Consider the game represented by the above matrix. Player 1's actions are Aand B, and player 2's actions are C and D. In each cell, the first number is player 1's payoff, and the second number is player 2's payoff. Select the correct statement: 0 Both players have a dominant strategy. 0 Player 1 has a dominant strategy and player 2 does not. 0 Neither player has a dominant strategy. 0 Player 2 has a dominant strategy and player '1 does not
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