Refer to Figure 4.2. How many Nash equilibria exist in this game?

Suppose the market demand curve (D) in an oligopoly market characterized by a dominant firm and a fringe is given by Q = 25 - 2P. The fringe supply curve is given by QF = -1 + 0.3P. If the marginal cost of production for the dominant is $3, calculate the market price and total output produced by the dominant firm and the fringe

a. Q = 14.42 units and P = $8.64 b. Q = 10.69 units and P = $7.15 c. Q = 12.69 units and P = $6.5 d. Q = 8.74 units and P = $5.15

How did the collapse of the housing bubble cause a contraction in output?

A. Because banks were unwilling to lend, many businesses were suddenly unable to access credit for their day-to-day needs. B. Because consumers lost confidence in the banking industry, they stopped depositing money, so banks could no longer lend. C. When banks wanted to make loans, but couldn't find any credit-worthy customers to loan to. D. When homeowners lost value in their homes, they stopped saving, which reduced banks' ability to lend.