please do both them correctly . The diagram below shows the demand curve for a monopoly and the costcurves for a single firm.Suppose this firm is being regulated using a policy of average-cost pricing.In this case, the firm would experiencerepresented by theareaOA. profits; P2P3abOB. losses; OP2eQ2O C. losses; cbedOD. no losses, no profits; -○ E. profits; cbedPriceP3beP₂ATCP1MCDOutput Consider the payoff matrix at right.○ A. The low output - low output pair of strategies is a Nash equilibrium.○ B. The low output - low output pair of strategies is a collusive outcome.○ C. The high output-high output and low output - low output pairs of strategies are Nash equilibria.○ D. The high output-high output and low output - low output pairs of strategies are collusiveoutcomes.○ E. The high output-high output pair of strategies is a collusive outcome.Firm BHigh Output Low OutputHigh Output $20 $20 $30 $6Firm ALow Output $6 $30 $26 $26

The monopoly refers to the market structure where only single firm exists in the market. There is no…

The diagram below shows the demand curve for a monopoly and the cost curves for a single firm. Suppose this firm is being regulated using a policy of average-cost pricing. In this case, the firm would experience represented by the area OA. profits; P2P3ab OB. losses; OP₂eQ2 OC. losses; cbed OD. no losses, no profits; - O E. profits; cbed

The diagram below shows the demand curve for a monopoly and the cost curves for a single firm. Suppose this firm is being regulated using a policy of average-cost pricing. In this case, the firm would experience represented by the area OA. profits; P2P3ab OB. losses; OP₂eQ2 OC. losses; cbed OD. no losses, no profits; - O E. profits; cbed

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider the payoff matrix at right. ○ A. The pairs of strategies L-L and L - H are the only Nash equilibria. B. The pairs of strategies H-H and L-L are the only Nash equilibria. ○ C. The pair of strategies H - H is the only Nash equilibrium. ○ D. The pair of strategies L-L is the only Nash equilibrium. ○ E. The pairs of strategies H-H and H-L are the only Nash equilibria. ... Firm A Firm B H L H $19 $19 $12 $8 L $8 $12 $27 $27
Evaluate this statement All Nash equilibra are dominant strategy equilibria but not all dominant strategy equilibria are Nash Equilibria
a. (D,R,A) and (U,L,B) are the only Nash equilibria in pure strategies. b. (M,R,A) and(D,R,B) are the only Nash equilibria in pure strategies. c. (D,R,A) and (D,R,B) are the only Nash equilibria in pure strategies. d. (M,R,A) and (U,L,B) are the only Nash equilibria in pure strategies. e. (D,R,A) and (M,R,B) are the only Nash equilibria in pure strategies.
Bob's Product- Strategy Pizza No Pizza Sam's Product Strategy No Pizza A U Pizza -$10 с -$10 $0 $15 B D $15 $10 $0 $10 Refer to the payoff matrix. Bob's Burgers and Sam's Sandwiches are competing restaurants in a small town. Both are considering adding pizza to their line of products. If this is a sequential game but we don't know who moves first, what can we say about the final outcome? A. There is no Nash equilibrium attainable for this game. B. Cell A represents the only Nash equilibrium possible for this game. C. Cell D represents the only Nash equilibrium possible for this game. D. Cells B and C both represent possible Nash equilibrium outcomes for this game.
Consider the following game in normal form. Not cooperate Cooperate Not cooperate 20,20 50,0 Cooperate 0,50 40,40 What is Nash equilibrium? Is it efficient? Why? What needs to be complied with so that the players would like to cooperate? What happens when one of the players does not cooperate? Why? Define trigger strategy. Calculate the discount factor (δ) that would make both players decide to cooperate.
Find any Nash equilibria in the game below. Firm B Co-operate Don’t co-operate Firm A Co-operate 60 60 0 80 Don’t co-operate 80 0 10 10 a. There is one Nash equilibrium: both firms don't co-operate. b. There are no Nash equilibria. c. There are two Nash equilibria: one firm co-operates and the other firm doesn't co-operate. d. There are two Nash equilibria: (i) both firms co-operate and (ii) both firms don't co-operate.
Which of the following statements about a Nash equilibrium is not correct? A. Each player plays a best response to opponents' Nash strategies. B. No player has a profitable unilateral deviation. C. For each finite noncoopertiave game there always exists a pure strategy Nash equilibrium. D. A game has at least two players. Which one of the following statements is incorrect? A. For dynamic games with complete information, not all subgame perfect Nash equilibrium points can be found by backward induction. B. A finite dynamic game with complete information may also have a normal form representation. C. A finite static game with complete information may not have a pure strategy Nash equilibrium. D. A finite static game with complete information cannot have an extensive form representation. Which one of the following statements is correct? A. A supergame cannot have any subgame perfect Nash equilibrium. B. A supergame can only have finite number of subgame perfect Nash…
True or false? If a game has a Nash equilibrium, that equilibrium will be the equilibrium that we expect to observe in the real world. False. People don’t always act in the way that a Nash equilibrium requires. People don’t always make the necessary calculations and they take into account the outcome of others. False. A Nash equilibrium is based on very strict assumptions that rarely hold in the real world. No real-world situation leads to a Nash equilibrium. True. As long as people are rational and have their own self-interest at heart, real-life games will result in the Nash equilibrium. True. Nash’s theory of equilibrium outcomes was derived from real-world interactions. The theory holds true for almost all real-world scenarios.
Consider a Centipede game below. Player 1 moves first and he can choose either L or R. If player 1 chooses R; then Player 2 moves choosing either L or R and if he chooses R then Player 1 moves choosing either L or R and then finally player 2 moves. 1 R 2 R 1 R 2 R 9,9 L 2,0 0,4 6,2 4,8 a. Represent this game in a normal form b. Find all the Pure Strategy Nash equilibrium or equilibria c. Find all the Sub-game Perfect Nash Equilibrium of this game
Consider the attached game depicted in Normal Form. Find one Nash equilibrium and verify that it is a Nash equilibrium. Note: 1. Remember to express the Nash equilibrium in the form of a strategy profile. 2. Use the definition of Nash equilibrium to verify that the strategy profile you find is really a Nash equilibrium.
a. b. Each firm has four alternative strategies, and a certain profit/payoff is associated with each strategy. The numbers in the payoff matrix denote firm A's profit (in thousands of dollars). The total amount of profit that can be earned by the two firms together is $20000. (This is called a "constant sum game.") Firm B's profit is therefore $20000 minus firm A's profit. What strategies will the two firms select? Is the game strictly determined? If so, how much does each firm gain? B's strategies A's strategies ↓ Increase Advertising Decrease Price Increase Price Alter Product Increase Advertising 0 11 8 11 Decrease Price 8 10 6 2 Increase Price 7 12 15 Alter Product 4 15 3 12 Suppose now that due to a change in consumer preferences, firm A's "Increase Price" strategy pays off better than before when firm B elects to "Decrease Price," that is, the payoff rises from 6 to 14. What strategies will the two firms now select? Is the game strictly determined? If so, how much does each firm…
Use the following normal-form game to answer the following questions. a. For what values of x is strategy D (strictly) dominant for player 2? b. For what values of x is strategy B (strictly) dominant for player 1? c. For what values of x is (B, D) the only Nash equilibrium of the game?