Author Question: In the game in Scenario 13.2, the equilibrium strategies A) are for both firms to offer rebates. ... (Read 83 times)

P68T · **on:** Jul 1, 2018

In the game in Scenario 13.2, the equilibrium strategies

A) are for both firms to offer rebates.
B) is for ABC to offer a rebate, and XYZ not to offer a rebate.
C) is for XYZ to offer a rebate, and ABC not to offer a rebate.
D) are for both firms to offer no rebate.
E) does not exist in pure strategies.

Question 2

Consider a good whose own price elasticity of demand is -1.5 and price elasticity of supply is 0.5. The fraction of a specific tax that is borne by producers is ________.

A) 0
B) 0.25
C) 0.5
D) 0.75
E) 1