only need solutions without explanations

1 If AB and CBD, both producers of upscale jet airplanes, were to collude rather than compete, consumers could expect: A. higher prices and higher quantities offered for sale B. lower prices and lower quantities offered for sale C. higher prices and lower quantities offered for sale D. each firm to cheat on the cartel agreement E. one firm to emerge as the price leader in the oligopoly

2 Duopolists A and B face the following demand curves: Q_A = 150 - 5P_A + 4P_B and Q_B = 150 - 5P_B + 4P_A. If both firms have zero marginal cost and they form a cartel, what is the profit-maximizing price and quantity? A. P = 25, Q = 250 B. P = 40, Q = 100 C. P = 60, Q = 120 D. P = 80, Q = 80 E. P = 75, Q = 150

3 Two firms (A and B) have marginal costs MC_A and MC_B, marginal revenues MR_A and MR_B, and market marginal revenue MR. If both firms produce as a cartel, they should produce so that: A. MC_A = MC_B = MR_A + MR_B B. MC_A = MR_A and MC_B = MC_B C. MC_A + MC_B = MR D. MC_A + MC_B = MR_A + MR_B, not necessarily MC_A = MR_A E. MC_A = MC_B = MR

4 If a cartel is working properly, its firms will likely be producing where (MC_i is each firm i's marginal cost, MR is market marginal revenue, and P is price): A. MC_i = MR B. MC_i > MR C. MC_i

5 Suppose duopolists in the market for spring water share a market demand curve given by P = 50 - 0.02Q, where P is the price per gallon and Q is thousands of gallons of water per day. The marginal cost of producing water is near zero for both firms. If one firm acts as a first mover, the second firm will produce: A. 0 gallons of water per day per firm B. 625 gallons of water per day C. 833 gallons of water per day D. 1250 gallons of water per day

6 What is the advantage to a particular firm of cheating on an otherwise effective cartel? A. The industry can then act like a monopoly. B. It decreases risk. C. It enhances credibility. D. It always pays in the show run and may pay in the long run.

7 Two local ready-mix cement manufacturers, Here and There, have combined demand given by Q = 105 - P. Their total costs are given by TC_Here = 5Q_Here + 0.5Q_2Here and TC_There = 5Q_There + 0.5Q_2There. If they successfully collude, their total output will be: A. 10 units B. 20 units C. 40 units D. 50 units

8 Radio City promises if you can find a lower advertised price for anything you bought at Radio City, anywhere in town within 30 days, it will return the difference plus 20%. A sophisticated game analysis suggests Radio City may be: A. losing money in the long run B. colluding with other stores C. using a commitment to threaten competitors D. preempting competitors E. using price leadership

9 Given the following payoff matrix, who has a dominant strategy?

Company B Strategy 1 Strategy 2 Company B's Company B's Strategy 1 Profit: $9 million Profit: $8 million Company A's Company A's Company Profit: $8 million Profit: $7 million A Strategy 2 Company 33 Company 88 Profit: $8 million Profit: $7 million Company A's Company A's Profit: $10 million Profit: $8 million B's strategies A's Strategies Enter Don't Enter Raise price (A gets 5, B gets 50) (A gets 200, B gets 0) Lower price (A gets 20, B gets 50) (A gets 50, B gets 0)