Quiz: Chapters 17 and 18 - Monopolistic Competition and Oligopoly Time Remaining
ID: 1124520 • Letter: Q
Question
Quiz: Chapters 17 and 18 - Monopolistic Competition and Oligopoly Time Remaining his Question: 1 pt 80f 10 (3 complete- Th Jay and Boyd are the only two producers of a new type of laundry bleach designed to displace conventonal laundry bleach. They are trying to figure out how much of this new bleach to produce The table shows the payol matrix (in dollars) for the game that Jay and Boyd must play The Nash equilibrium for this game is that Jay's saegies fred squares) 5,000 80,000 140,00 A. Jay produces 15,000 bottles and Boyd produces 30,000 bottles O B. Jay produces 15.000 bottles and Boyd produces 15,000 bottles O C. Jay produces 30,000 bottles and Boyd produces 30,000 bottles D. Jay produces 30,000 bottles and Boyd produces 15,000 bottles 15,000 80,000 20,000 Boyds bottles trategies squares) E. Jay and Boyd produce a total of 60,000 botles, but it is impossible to know how much of the total each 20,000 firm produces 30,000 bomies 140,000Explanation / Answer
Q1
Answer
Option C
Both will produce 30000 bottles because both have same payoffs and dominant strategies.
the dominant strategy is not changed on the basis of others strategy.
if Boyd produces 30000 or15000 bottles, in both cases Jay will produce 30000 bottles and vice versa.
Q2
Answer
Option D
there are many firms so one firm can market its product and differentiate from others which helps them to be price maker but these firm do no dictate the market conditions
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