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Author Question: A Nash equilibrium ______. A. is the outcome that delivers maximum economic profit B. is the ... (Read 55 times)

yoooooman

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on: Jun 29, 2018
A Nash equilibrium ______.
 
  A. is the outcome that delivers maximum economic profit
  B. is the outcome in which each player takes the best action given the other player's action
  C. changes each time the game is played
  D. is the best possible outcome for the two players

Question 2

The price elasticity of demand for new stereos is 2 . Suppose a stereo store wishes to increase its sales by 15 percent. What should the firm do?
 
  What will be an ideal response?


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rachel

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Reply #1 on: Jun 29, 2018
Answer to Question 1

B Answer B is the definition of a Nash equilibrium.

Answer to Question 2

15/ percentage change in price = -2 . Therefore, the store should lower the price by 7.5 percent.


yoooooman

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Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

nathang24

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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