Refer to the scenario above. Suppose the cost of advertising in this industry is very high and each company will incur a cost of $3 million annually if they choose to advertise. Which of the following is true in this case?
A) Company A's best response is to advertise if Company B advertises.
B) Company B's best response is to advertise irrespective of what Company A does.
C) Company A's dominant strategy is to advertise.
D) This game does not have a dominant strategy equilibrium.
D
Economics
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The manager of a gas station noticed that when prices in the convenience store of the gas station decreased, gas sales increased. This could possibly be because the convenience store products are
a. usually complements to the gas sales b. usually substitutes to the gas sales c. usually unrelated to the gas sales d. none of the above
Economics
A vertical demand curve has an elasticity of demand equal to zero
a. True b. False Indicate whether the statement is true or false
Economics