In a duopoly, if advertising only take customers from rivals rather than attracting new customers, then
A) the Nash equilibrium does not maximize the joint payoff
B) the Nash equilibrium maximizes the joint payoff
C) firms need to collude to maximize their joint payoff
D) there is no dominant strategy
A) the Nash equilibrium does not maximize the joint payoff
You might also like to view...
Organic food might be good for your health but in light of the 2008 downturn in the economy and falling incomes, consumers are buying less organic and more non-organic food. Based on these events, what is TRUE?
A) Organic food is a normal good and non-organic food is an inferior good. B) Organic food is an inferior good and non-organic food is a normal good. C) Organic food is a normal good and non-organic food is a normal good. D) Organic food is an inferior good and non-organic food is an inferior good.
A cartel might fail because
A) it does not control enough of the output in a market to raise prices enough. B) there is an incentive for members to cheat. C) too many firms leave the cartel, causing the cartel price to fall. D) All of the above.