Econ 101- Principles of Microeconomics Fall 2021 Professor Hansen December 9th & 10th 3. Now suppose X = 40. What is firm A's maxmin strategy? What is firm B's maxmin strategy? a. Firm A: Raise; Firm B: Raise b. Firm A: Raise; Firm B: Don't Raise c. Firm A: Don't Raise; Firm B: Raise d. Firm A: Don't Raise; Firm B: Don't Raise 4. How many Nash equilibrium/a does this game have with X = 40? a. 0 b. 1 c. 2 d. 3 e. 4Econ 101- Principles of Microeconomics Fall 2021 Professor Hansen December 9th & 10th 3. Suppose Sweet Shop's total cost curve is 1,Q2. (In the long-run, if Sweet Shop is T producing Q = 20, what price must it be charging? TC = TOG L monopolistically competitive tim makes a prothes P= D= AR= 10 - a Why ? P = Ac = TC / Q = Multiple choice questions Airline Pricing Competition. Two firms are competing in the airline industry. Consider the following game matrix representing their profits in millions of dollars. Firm A/ Firm B Raise Price |Don't Raise Price Raise Price 50,50 X, 100 Don't Raise Price 100,X 60,60 1. Suppose X = 70. What is firm A's maxmin strategy? What is firm B's maxmin strategy? a. Firm A: Raise; Firm B: Raise b. Firm A: Raise; Firm B: Don't Raise c. Firm A: Don't Raise; Firm B: Raise d. Firm A: Don't Raise; Firm B: Don't Raise 2. How many Nash equilibrium/a does this game have with X = 70? a. 0 b. 1 c. 2 d. 3 e. 4 Page 6