Questions from Managerial Economics

Q: Consider a Bertrand oligopoly consisting of four firms that produce an identical

Consider a Bertrand oligopoly consisting of four firms that produce an identical product at a marginal cost of $140. Analysts estimate that the inverse market demand for this product is P = 400 − 5Q....

Q: An industry consists of three firms with sales of $225,

An industry consists of three firms with sales of $225,000, $45,000, and $315,000. a. Calculate the Herfindahl-Hirschman index (HHI). b. Calculate the four-firm concentration ratio (C4). c. Based on t...

Q: Provide a real-world example of a market that approximates each

Provide a real-world example of a market that approximates each oligopoly setting, and explain your reasoning. a. Cournot oligopoly. b. Stackelberg oligopoly. c. Bertrand oligopoly.

Q: Consider a two-player, sequential-move game where each

Consider a two-player, sequential-move game where each player can choose to play right or left. Player 1 moves first. Player 2 observes player 1’s actual move and then decides to move right or left. I...

Q: Use the following extensive-form game to answer the following questions

Use the following extensive-form game to answer the following questions. a. List the feasible strategies for player 1 and player 2. b. Identify the Nash equilibria to this game. c. Find the subgame p...

Q: Use the following payoff matrix for a one-shot game to

Use the following payoff matrix for a one-shot game to answer the accompanying questions. a. Determine the Nash equilibrium outcomes that arise if the players make decisions independently, simultaneou...

Q: Use the following payoff matrix to answer the following questions.

Use the following payoff matrix to answer the following questions. Suppose this is a one-shot game: a. Determine the dominant strategy for each player. If such strategies do not exist, explain why not...

Q: Using the same payoff matrix as in question 9, suppose this

Using the same payoff matrix as in question 9, suppose this game is infinitely repeated and that the interest rate is sufficiently “low.” Identify trigger strategies that permit players 1 and 2 to ear...

Q: While there is a degree of differentiation between major grocery chains like

While there is a degree of differentiation between major grocery chains like Albertsons and Kroger, the regular offering of sale prices by both firms for many of their products provides evidence that...

Q: Suppose Toyota and Honda must decide whether to make a new breed

Suppose Toyota and Honda must decide whether to make a new breed of side-impact airbags standard equipment on all models. Side-impact airbags raise the price of each automobile by $1,000. If both firm...