Which of the following is a simultaneous decision game? A) Tic-tac-toe B) Chess C) Poker D) Rock-paper-scissors ANSWER D
Date: September 9th, 2020
Purchasing a season pass to the local symphony A) is an example of first degree price discrimination. B) is an example of second degree price discrimination. C) is an example of third degree price discrimination. D) All of the above. ANSWER B
Date: September 9th, 2020
Declining-block quantity discrimination makes sense if A) buyers of smaller quantities are more price sensitive than buyers of larger quantities. B) buyers of smaller quantities are less price sensitive than buyers of larger quantities. C) demand for the good is perfectly elastic. D) the lower price for larger quantities encourages all consumers to purchase the […]
Date: September 9th, 2020
In a two-player simultaneous game where neither player has a dominant strategy, A) there is never a Nash equilibrium. B) there is only one Nash equilibrium. C) the actual outcome is unpredictable. D) the actual outcome will not be a Nash equilibrium. ANSWER C
Date: September 9th, 2020
A mixed strategy may A) be part of a Nash equilibrium. B) be a set of probabilities of selecting each possible action. C) lead identical firms to choose different actions. D) All of the above. ANSWER D
Date: September 9th, 2020
If a firm sells to two distinct identifiable markets and resale is impossible, why is price discrimination more profitable than setting a single price? What will be an ideal response? ANSWER If the firm charges a single price on the two different markets, marginal revenue in one market will exceed marginal revenue in the […]
Date: September 9th, 2020
If the demand for air travel were to change so that business travelers and vacationers have the same price elasticity of demand for air travel, A) airlines would charge the same price to each type of flyer. B) airlines would still charge business flyers a higher fare since the traveler’s employer pays anyway. C) airlines […]
Date: September 9th, 2020
A weapons producer sells guns to two countries that are at war with each other. The guns can be produced at a constant marginal cost of $10. The demand for guns from the two countries can be represented as: QA = 100 – 2p QB = 80 – 4p Why is the weapons producer able […]
Date: September 9th, 2020
What is a primary difference between rebates and coupons? A) Coupons allow individuals to sort themselves into the high-elasticity group after the sale. B) Neither coupons nor rebates are redeemed in high numbers. C) Rebates allow individuals to sort themselves into the high-elasticity group after the sale. D) Coupons are legal and rebates are illegal. […]
Date: September 9th, 2020
If the marginal cost of production is $10, the elasticity of demand for group 1 is -1.5, the elasticity of demand for group 2 is -2.5, and the price paid by group 1 is $15, the price for group 2 is A) $8.33. B) $27. C) $15. D) Impossible to tell. ANSWER A
Date: September 9th, 2020
