Refer to Scenario 13.16. If the firms must choose their prices simultaneously,
A) both firms will buy gelato.
B) both firms will buy yogurt.
C) two pure strategy equilibria exist, one in which Gooi alone buys a gelato machine and one in which Ici alone buys a gelato machine.
D) the game has no pure strategy equilibrium.
E) the game has no mixed strategy equilibrium.
C
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Which of the following statement is correct?
A) If nominal GDP does not change, then real GDP cannot change. B) If nominal GDP decreases, then real GDP must increase. C) Nominal and real GDP can change either in the same direction or the opposite direction. D) If real GDP decreases, then nominal GDP must decrease. E) If nominal GDP increases, then real GDP must increase.
International trade under a floating exchange rate system
a. has been trouble-free owing to the stabilizing role of speculators in the currency markets. b. has suffered from so many problems that the volume of trade has declined significantly. c. exposes businesses to unavoidable risks when exchange rates change. d. has been subject to wild runs on currencies that were on the verge of devaluation.