Questions from Managerial Economics


Q: CUS Pharmacy wishes to carry Pepgro blue pills. But Daisy Pharmaceuticals

CUS Pharmacy wishes to carry Pepgro blue pills. But Daisy Pharmaceuticals, the maker of Pepgro, will not supply CUS unless CUS agrees to carry other medications that Daisy makes. This is an example of...

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Q: Fred and his employer both know that Fred can generate $200

Fred and his employer both know that Fred can generate $200,000 of profit per year for his company. After negotiations, they agree that he will earn $110,000 in annual compensation. What does this imp...

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Q: How many pure strategy equilibria does the following game have?

How many pure strategy equilibria does the following game have? a. 0 b. 1 c. 2 d. 3  LABOR     Bargain Hard Be Nice  MANAGEMENT Bargain Hard 0,0 20, 10   Be Nice 12, 18 15, 15...

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Q: In the game in Question 3, how much does Labor earn

In the game in Question 3, how much does Labor earn if they can move first? a. 10 b. 15 c. 18 d. 20

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Q: Consider a vendor-buyer relationship. Which of the following conditions

Consider a vendor-buyer relationship. Which of the following conditions would lead to the buyer having more bargaining power? a. Lots of substitutes for the vendor's product are available. b. There ar...

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Q: Consider bargaining in which each party increases its outside option by $

Consider bargaining in which each party increases its outside option by $10,000. Which of the following is a likely result. a. The chance of a deal increases. b. Each party’s share of the bargaining...

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Q: Pete and Lisa are entering into a bargaining situation in which Pete

Pete and Lisa are entering into a bargaining situation in which Pete stands to gain up to $5,000 and Lisa stands to gain up to $1,000, provided they reach agreement. Who is likely to have the stronger...

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Q: George and KC have been working jobs that pay $60,

George and KC have been working jobs that pay $60,000 and $30,000 per year, respectively. They are trying to decide whether to quit their jobs and jointly open up a taco stand on the beach, which th...

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Q: The game of chicken has a. a second-mover

The game of chicken has a. a second-mover advantage. b. a first-mover advantage. c. no sequential-move advantage. d. potential sequential-move advantages, depending on the players.

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Q: Two hospitals are bargaining with an insurance company to get into its

Two hospitals are bargaining with an insurance company to get into its provider network. The insurance company can earn $100 if it puts one of the hospitals in its network and $200 if it puts both ho...

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