1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
stepladder [879]
3 years ago
11

In a duopoly game we observe the following payouts: if the two firms collude they will each earn $50,000. If one firm cheats the

n he earns $60,000 and the other firm earns -$10,000. If both firms cheat then they each earn zero economic profit. In this game what is the Nash equilibrium?
Business
1 answer:
OLEGan [10]3 years ago
7 0

Answer:

the Nash equilibrium for both players is to collude

Explanation:

A duopoly is when there are two firms operating in an industry.

Game theory looks at the interactions between participants in a competitive game and calculates the best choice for the player.

Dominant strategy is the best option for a player regardless of what the other player is playing.

Nash equilibrium is the best outcome for players where no player has an incentive to change their decisions.

 the Nash equilibrium for both players is to collude because it is the best outcome for both players. if, a player cheats, there is a chance that the other player would cheat and both firms would end up earning a zero economic profit

You might be interested in
What effect does the entry of new firms have on the economic profits of existing​ firms? When new firms enter a monopolistically
Ronch [10]

Answer:

decrease and demand curve will shift to the left.

Explanation:

When new firms enter a monopolistically competitive​ market, the economic profits of existing firms will decrease. This is because, new firms enter an existing market if they spot a profit opportunity . The entry of these new firms will therefore increase the quantity of products or services supplied in the market which gives consumers more choices and substitutes. As a result, the demand curve of the existing firms will also shift to the left. because their

7 0
3 years ago
Suppose that Inventories fall by $2 billion, Consumption increases by $8 billion, Welfare Payments decline by $3 billion, Export
Georgia [21]

Answer: <u><em> The measured-GDP would increase by $5 billion.</em></u>

Explanation:

Given :

Inventories fall by $2 billion,

Consumption increases by $8 billion,

Welfare Payments decline by $3 billion,

Export increases by $1 billion

Import also increases by $2 billion.

Note: While calculating GDP we will not include Welfare payments in it.

GDP = C + I + G + (X-M)

GDP = -2 + 8 + 1 - 2

GDP = $5 billion  

8 0
3 years ago
Period costs are a.classified as direct labor, direct material, or factory overhead b.not involved in the production process c.f
goldfiish [28.3K]

Answer:

Not involved In the production process

Eg. Selling expenses or advertising expenses

3 0
3 years ago
2. What would you say to some who said that citizens had no right to know where their federal income tax money goes?
DochEvi [55]

Federal tax dollars are collected from citizens to use for programs and infrastructure that is supposed to be used for public good, such as early childhood education, social security, roads, bridges, etc. Since the money is from citizens and for citizens, they should know how the money is spent so they can hold their elected representative accountable.

4 0
3 years ago
Excise taxes tend to.
natka813 [3]
Excise taxes tend to<span> increase prices.</span>
6 0
2 years ago
Other questions:
  • When a certain competitive firm produces and sells 100 units of output, marginal revenue is $80. when the same firm produces and
    10·1 answer
  • Carolina mills purchased $270,000 in supplies this year. the supplies account increased by $10,000 during the year to an ending
    10·1 answer
  • An oligopolistic market structure is distinguished by several characteristics, one of which is either homogeneous or differentia
    9·1 answer
  • To keep the price of gas from rising quickly after Katrina, the government instituted price ceilings on the price of gasoline in
    6·1 answer
  • A computer programmer turns over all access to
    10·2 answers
  • Experimenting with new ideas in the workplace is important
    5·2 answers
  • King Costume uses a periodic inventory system. The company started the month with 6 masks in its beginning inventory that cost $
    12·1 answer
  • Identify the ways in which lower of cost or market can be applied to merchandise inventory. (Check all that apply.) Multiple sel
    13·1 answer
  • In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five y
    15·1 answer
  • Laker Company reported the following January purchases and sales data for its only product. The Company uses a periodic inventor
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!