Author Question: Refer to Scenario 13.15. If the firms price simultaneously, equilibrium would be A) an 80 price ... (Read 76 times)

codyclark · **on:** Jul 1, 2018

Refer to Scenario 13.15. If the firms price simultaneously, equilibrium would be

A) an 80 price for Simple and a 70 price for Boring.
B) an 80 price for Simple and a 25 price for Boring.
C) a 35 price for Simple and a 70 price for Boring.
D) a 35 price for Simple and a 25 price for Boring.
E) a mixed strategy equilibrium.

Question 2

Suppose there are seven firms in a market where the three largest firms supply 20 of the market-clearing quantity and the other four firms supply 10 of the market-clearing quantity. What is the five-firm concentration ratio (i.e.

, the share of total sales controlled by the five largest firms in the market)? A) 60
B) 70
C) 80
D) 90