In the game above, what is/ are the sub-

game perfect Nash equilibrium? (up.up) up,

down) (down, up) (down, down) No

equilibrium exists

Down Up Player 1 In the game above, what is/are the sub-game perfect Nash equilibrium? (up,up) (up down) D (down, up) (down, down) No equilibrium exists QUESTION 3 The Bertrand theory of oligopoly assumes O firms set prices. O rivals will increase their output whenever a firm increases its output O rivals will decrease output whenever a firm decreases its output. O rivals will follow the learning curve. QUESTION 4 Which of the following are price-setting oligopoly models? O Stackelberg O Cournot O Bertrand O Cournot and Stackelberg Up Down Up Down Player 2 P1 gets $25 P2 gets $15 P1 gets $10 P2 gets $10 P1 gets $15 P2 gets $5 P1 gets $15 P2 gets $25