A dominant strategy is
A) a strategy chosen by two firms that decide to charge the same price or otherwise not to compete.
B) a strategy that is the best for a firm no matter what strategies other firms use.
C) a strategy that is obviously the best for each firm that is a party to a business decision.
D) an equilibrium where each firm chooses the best strategy, given the strategies of other firms.
Question 2
Which of the following are necessary conditions for successful price discrimination?
a. zero transactions costs
b. a perfectly competitive market structure
c. an imperfectly competitive market structure
d. at least two different markets with different price elasticities of demand
e. at least two different markets with different price elasticities of supply
A) a, b, and d only B) c and d only C) a, c, d, and e only D) a and c only
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