Signalling is a way of solving: O a. dynamic problems. b. adverse selection problems. O c. coordination problems. O d. moral hazard problemns.
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- Dell Inc. learned that the lithium-ion batteries in its notebook computers posed a fire hazard to consumers. The company recalled 2.7 million batteries and gave consumers a replacement before any personal injuries resulted. Dell was most likely concerned with consumers' right to Select one: a. choose. O b. be heard. O c. be informed. O d. happiness. O e. safety.Dave and Ellen enter into a contract via e-mail. When a dispute arises over the performance of the deal, Dave files a suit against Ellen. The type of law that governs transactions conducted via the Internet is referred to by the term: Select one: O a. cyberlaw. b. civil law. C. equitable maxims. O d. IRAC.one of the following is not a physical functioning component Select one: O a. activities of daily living O b. life satisfaction O c energy level O d. bodily pain V > 1:46 drug A cost 5000 $ and 4 QALYS drug cost 10000S and 3.5 QALYS calculate CUA CEA Select one: O a. A dominant for both O b. B dominant for both O C.A dominant in CUA O d. A dominant in CEA
- II. True or False 1, Warranty can serve as a signaling device of a productliability, because consumers take more care about the product provided by reliable firm. 2. When using Hypothetical monopolist test to define the relevant market for a food delivery platform, it is important to do test not only on a small increase in the food delivery fee, but also the increasing comission charged on the restaurant side. 3, A firm with trusted brand has no incentive to cheat consumers because the fly-by-night profit of cheating is not attractive compared to the long run reputation premium. 4. After the milk crisis of 2008, despite the effort of some dairy firms to improve food safety, consumers are still skeptical for the domestic dairy product because their belief on food safety is based on the whole industry's past, instead of the individual firm's past.QUESTION 3 In the prisoners' dilemma game with Bonnie and Clyde as the players, the likely outcome is O a a bad outcome for both players. b. a very good outcome for Clyde, but a bad outcome for Bonnie. O c. a very good outcome for both players. O d. a very good outcome for Bonnie, but a bad outcome for Clyde.Patents grant a temporary monopoly, and can therefore raise drug prices. Given that, why are drug patents beneficial? a If drug prices are too low, consumers will think they are ineffective and won't use them. b Insurance companies want drug prices to be high so they can charge higher premiums to consumers. c Without a patent, a new drug could be easily replicated by competitors, and the innovator would receive no profits. Thus, there would be no incentive to spend effort making the new drug. d Consumers enjoy paying higher prices for drugs that improve their quality of life.
- P&G 1.10 1.20 1.10 - 226 - 215 1.20 - 106 - 89 1.30 - 56 - 37 1.40 - 44 - 25 1.50 - 52 -32 1.60 - 70 -51 - 93 -76 1.70 1,80 - 118 - 102 Why is this situation an example of the prisoners' dilemma game? This game is a type of prisoners' dilemma because O A. the firms are rivals. OB. competing maximizes joint firm profits. O C. the game results in cooperation. Click to select your answer. 1.30 - 204 -73 - 19 -6 - 15 - 34 - 59 -87 1.40 -194 - 58 2 S 12 5 3 - 18 -44 -72 1.50 - 183 - 43 15 29 20 -1 - 28 -57 1.60 - 174 - 28 31 46 36 14 -13 -44 1.70 - 165 - 15 47 62 52 30 1 -30 130 15228841517 1.80 - -2 62 68 441) A decision-maker should acquire new information Select one: a. Only when the information is highly unreliable. b. Only if its expected value is greater than the cost of acquiring it. c. Only if its cost is high. d. Whenever the information will have no impact on the manager's decision. 2) A monopoly industry is characterized by a Select one: a. More than 5 firms dominating the industry. b. Large number of small firms dominating the industry. c. Single-firm dominating the industry d. none of these 3) Cobb Douglas function is related to Select one: a. relationship between Production outputs and inputs b. none of these c. Law of supply d. Law of demand 4) Consumer surplus is defined as Select one: a. the difference between the amount that the consumer is willing to pay and the amount that she is actually charged b. None of these c. the sum of the amount that the consumer is willing to pay and the amount that she is actually charged d. the amount that the consumer is willing to payAdvertising can be a signal of qualitya. if advertising is freely available to all firms.b. if the benefit of attracting customers is greaterfor firms with better products.c. only if consumers are irrationally attracted toproducts they see advertised.d. only if the content of the ads contains credibleinformation about the products.
- 1 This table shows the maximum willingness to pay for three consumers of lemonade and hot dogs. The marginal cost of both products is $0.25. A pure bundling strategy, where each bundle includes 1 lemonade and 1 hot dog, would earn a profit of $ Amoli Taahira Mirai Maximum Willingness to Pay Hot dogs O 6.25 4.50 3.75 8.25 2. Lemonade $3.00 2.00 0.25 (Table: Gascolator Producers I) Banner and Sense are Bertrand competitors producing identical gascolators (a main line strainer). Banner's Sense's Price Price $ 80 $100 80 80 100 101 000 $1.50 2.50 3.00 Banner's Sense's Quantity Sold Quantity Sold The inverse market demand curve for gascolators is P = 2,000-40, where Q is the quantity of gascolators and P is the price per gascolator. Banner and Sense produce gascolators at a constant marginal cost of $80. If Banner charges a price of $80 and Sense charges $80, Sense's quantity sold is 0 180 320 240Judd Joel Gus Tim $2 First film Second film Third film Fourth film Fifth film 57 $3 2. 1. $5 4. 0. 3. 21 4. 3. 0. 0.Who gave Theory of Signalling?