A situation in which each firm selects its best action, given what its rivals are doing, is called a
A) Nash equilibrium.
B) Cooperative equilibrium.
C) Stackelberg equilibrium.
D) zero sum game.
Question 2
Automobile manufacturers commonly sell new car models at the full suggested retail price during the first few years the car is on the market, and they do not offer rebates or discounts.
After the initial sales period, the manufacturers typically offer rebates or discounts on these models. The marginal cost of manufacturing the cars is constant across time. Which of the following statements is true? A) The firms practice peak-load pricing by charging a higher price in the initial sales period.
B) Early buyers have higher reservation prices for the new models, and the manufacturers maximize profits by charging these buyers a higher price.
C) The marginal revenue from buyers who purchase these cars after the initial sales period must be lower that the marginal revenue from early buyers.
D) To maximize profits, the firms equate the buyers' reservation prices across time.
The approval of a new drug is a four-stage process: (1) preclinical investigation, (2) clinical inve
Signs and Symptoms of Shock Following a Crisis Situation
Phases of the myocardial action potential. Ion movements during each phase are shown.
A resonance tube, called a Helmholtz resonator, is used on the intake duct between the air filter ...
Summary of Drug Action: Common Routes of Administration
Propagation of an action potential