Exercise 1 Are the following statements true, false, or uncertain? Provide a brief explanation. (40 marks, 8 for each statement) (a) Some consumers strongly prefer Coke and some strongly prefer Pepsi. Statement: this means that Coke and Pepsi are not in the same market. (b) Consider a Cournot duopoly: demand is P(91,92) = 40-91-92, marginal costs are constant at c= 10 for both firms. Statement: for any player, choosing a quantity qe = 12 is a dominated strategy. (c) Consider an oligopoly. Suppose that one of the firms has the option to move before its opponents (instead of the firms deciding simultaneously). Statement: the firm will never strictly prefer to forgo this option. (d) It is optimal for a monopolist to choose a quantity such that ledl