Refer to the diagram, where the numerical data show profits in millions of dollars. Beta's profits are shown in the northeast corner and Alpha's profits in the southwest corner of each cell. If both firms follow a high-price policy, each will realize a $20 million profit. Alpha will realize a $10 million profit and Beta a $30 million profit. each will realize a $15 million profit. Beta will realize a $10 million profit and Alpha a $30 million profit. Q#2 Refer to the diagram, where the numerical data show profits in millions of dollars. Beta's profits are shown in the northeast corner and Alpha's profits in the southwest corner of each cell. If Beta commits to a high-price policy, Alpha will gain the largest profit by engaging in nonprice competition only. also adopting a high-price policy. adopting a low-price policy. adopting a low-price policy, but only if Beta agrees to do the same. Q#3 Refer to the diagram, where the numerical data show profits in millions of dollars. Beta's profits are shown in the northeast corner and Alpha's profits in the southwest corner of each cell. Which cell represents a Nash equilibrium? Cells B and C both represent a Nash equilibrium. cell A There is no Nash equilibrium in this game. cell D
QUESTION 1
Refer to the diagram, where the numerical data show profits in millions of dollars. Beta's profits are shown in the northeast corner and Alpha's profits in the southwest corner of each cell. If both firms follow a high-price policy,
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each will realize a $20 million profit.
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Alpha will realize a $10 million profit and Beta a $30 million profit.
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each will realize a $15 million profit.
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Beta will realize a $10 million profit and Alpha a $30 million profit.
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Q#2
Refer to the diagram, where the numerical data show profits in millions of dollars. Beta's profits are shown in the northeast corner and Alpha's profits in the southwest corner of each cell. If Beta commits to a high-price policy, Alpha will gain the largest profit by
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engaging in nonprice competition only.
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also adopting a high-price policy.
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adopting a low-price policy.
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adopting a low-price policy, but only if Beta agrees to do the same.
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Q#3
Refer to the diagram, where the numerical data show profits in millions of dollars. Beta's profits are shown in the northeast corner and Alpha's profits in the southwest corner of each cell. Which cell represents a Nash equilibrium?
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Cells B and C both represent a Nash equilibrium.
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cell A
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There is no Nash equilibrium in this game.
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cell D
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Q#4
Refer to the diagram, where the numerical data show profits in millions of dollars. Beta's profits are shown in the northeast corner and Alpha's profits in the southwest corner of each cell. If Alpha and Beta engage in collusion, the outcome of the game will be at cell
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B.
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A.
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D.
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C.
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