Question 3 2 pts Before deciding on a pricing strategy, Worldwide Widgets consults with its market intelligence team to understand what discounts the Gargantuan Gizmo Company is offering. The model that BEST ts this industry is: O a monopoly. 0 an oligopoly. O monopolistic competition. 0 pure competition. D Question 10 4 pts Boeing and Airbus can either comply with a cartel agreement or cheat. Based on the table, if this game is only played once, and each firm plays rationally: Airbus Cheat Comply Boeing Cheat SO, SO $3 million, -$1 million Comply -$1 million, $3 million $2 million, $2 million O both Boeing and Airbus will cheat. O Boeing will comply and Airbus will cheat. O both Boeing and Airbus will comply. O Boeing will cheat and Airbus will comply.D Question 5 2 pts A Nash equilibrium: 0 assumes that some players are better equipped to strategize. 0 always has the best outcome for both players. 0 involves a zero-sum game scenario. 0 assumes that each player chooses his or her best strategy. D Question 8 2 pts You cheat on our agreement rst. | cheat next. Then we leave the door open for future reconciliation (cooperation), is BEST referred to as a(n): O irrational strategy. 0 grim strategy. 0 tit-fortat strategy. 0 trembling hand strategy. D Question 6 4 pts In the game table represented above, the dominant strategies are: Katy Jesse Left Right Up 4, 8 3, 7 Down 6.5 5. 2 O Jesse plays Up and Katy plays Left. O Jesse plays Down and Katy plays Right. O Jesse plays Down and Katy plays Left. O Jesse plays Up and Katy plays Right.D Which action can help increase the stability of a cartel? 0 increase product differentiation 0 increase government protection 0 increase the number of cartel members 0 decrease barriers to entry into the industry D Question 9 2 pts If Nintendo lowers the price of its product by $10, Sony responds by lowering the price of its own product by $10 and chooses not to cooperate again. This is an example of what type of game strategy? 0 grim trigger O predatory pricing [3 O trembling hand trigger O tit-fortat D Question 1 2 pts Which describes monopolistic competition but NOT perfect competition? O There are a large number of firms. O Products of individual firms are different. O Entry and exit are easy. O Each firm has an insignificantly small market share.D Question 7 2 pts In the game table, the Nash equilibrium is: Katy Jesse Left Right Up 4. 8 3, 7 Down 6.5 5, 2 O Up, Left = (4, 8) O Down, Left = (6, 5) O Up, Right = (3, 7) O Down, Right = (5, 2)D Question 2 2 pts In an oligopoly, all the firms: O compete over price alone. O compete over advertising. O face easy entry and exit from the market. O take their competitors into account when they make pricing decisions