Ask Question, Ask an Expert


Ask Business Economics Expert

Multiple choice problems on game theory.

1) Which of the following strategies are used by businesses to capture consumer surplus?

a) Price discrimination

b) Bundling

c) Two-part tariffs

d) All of the above


2) Nash equilibria are stable because

a) They involve dominant strategies

b) They involve zero-sum games

c) They occur in non-cooperative games

d) Once the strategies are chosen, no players have an incentive to negotiate jointly to change them.

e) Once the strategies are chosen, no player has an incentive to deviate unilaterally from them.


3) Bubba Burgers has discovered there are economies of scope available to the restaurant. Elucidate which is most likely to be a response to this discovery?

a) Bubba adds more varied inputs to burger production

b) Bubba expands burger production, focusing on that one good

c) Bubba contracts burger production

d) Bubba adds grilled chicken sandwiches to the menu

e) Bubba cuts back on the diversity of the menu


4) Carolyn knows average total cost and average variable cost for a given level of output. Which of the following costs can she not determine given this information?

a) Total cost

b) Average fixed cost

c) Variable cost

d) Fixed cost

e) She can determine all of the above costs given the information provided.


5) Karen is an executive at Dell Computer Company, in charge of designing the next version of laptop computers. She will consider such features as screen size, weight, processor speed, and CD and DVD drives. Given the fact that it is costly to include more features in new products, why might Karen be interested in data on how much consumers paid for a range of laptops with different attributes?

a) In order to estimate willingness to pay for each feature

b) In order to set an optimal price for the laptops

c) In order to determine the best features to include

d) In order to estimate the willingness to trade off one feature for another



Use the following information to answer problems 6-7:

Vita Bars

Sponsor marathon Sponsor TV running show


NRG Marathon 5, 9 9, 6

Bars Sponsor TV

Running Show 8, 14 3, 16


Note: Payoffs are in profits (Millions of dollars)


6) Which of the following is TRUE for this game?

a) NRG's dominant strategy is to sponsor the marathon

b) NRG's dominant strategy is to sponsor the TV show

c) Vita's dominant strategy is to sponsor the marathon

d) Vita's dominant strategy is to sponsor the TV show

e) Neither company has a dominant strategy


7) In this game, equilibrium

a) Is for both companies to sponsor the marathon

b) Is for both companies to sponsor the TV show

c) Is for NRG to sponsor the marathon and Vita to sponsor the TV show

d) Is for NRG to sponsor the TV show and Vita to sponsor the marathon

e) Does not exist for a simultaneous move game


8) Which of the following is NOT conducive to the successful operation of a cartel?

a) Market demand for the good is relatively inelastic

b) The cartel supplies all of the world's output of the good

c) Cartel members have substantial cost advantages over non-member producers

d) The supply of non-cartel members is very price elastic


9) In the long run, which of the following is considered a variable cost?

a) Expenditures for wages

b) Expenditures for research and development

c) Expenditures for raw materials

d) Expenditures for capital machinery and equipment

e) All of the above


10) A local restaurant offers "early bird" price discounts for dinners ordered from 4:30-6:30pm. This is an ex of:

a) Peak-load pricing

b) Second-degree price discrimination

c) A two-part tariff

d) Bundling

e) None of the above


11) The total cost of producing computer software diskettes (Q) is given as TC = 200 + 5Q. What is the variable cost?

a) 200

b) 5

c) 5Q

d) 5 + 200/Q

e) None of the above


12) How many economists does it take to change a light bulb?

a) Four, plus or minus 10.

b) Irrelevant. The light bulb's preferences are taken as given.

c) None. If the government would just leave it alone, it would screw itself in.

d) None. If it really needed changing, it would have already happened.

None, because look! It's getting brighter! It's definitely getting brighter!!!


Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M916106

Have any Question? 

Related Questions in Business Economics

Assignmentarticle reportplease select a marketing topic you

Assignment Article Report Please select a marketing topic you learned and then search in the Wall Street Journal (either online or hardcopy *) and select an article about that topic within the last 12 months. To do this, ...

Assessment task in this assessment students are required to

ASSESSMENT TASK: In this assessment, students are required to demonstrate their ability to apply economic principles learnt in this subject to analysing real-world business operations and evaluate how their long-run busi ...

1 there is a small country whose domestic demand and supply

1) There is a small country whose domestic demand and supply for a good x are given below (where P is the price of X) [drawing a demand and supply graph may be helpful to you, but is not required.] D: P=100-Q S: P=10+2Q ...

Assignmentinstructions1 select an illegal activity and

Assignment Instructions 1. Select an illegal activity and transform/mask its' true purpose with the disguise of a legitimate business operation. In other words, create a start-up business that would be viewed as a legal ...

Question 1 for the following situations calculate

Question 1 . For the following situations, calculate elasticity of demand and comment on the answer.                             When the price of commodity X was Rs. 12/-, 40 units it were demanded. When the price decre ...

Allocation and allotments please respond to the following1

"Allocation and Allotments" Please respond to the following: 1. From the first e-Activity, examine and evaluate the disparity of Georgia budget allocation for education and property tax to the various localities. Based o ...

1what is the production possibilities curve and how is it

1. What is the production possibilities curve and how is it useful? 2. What 4 factors contribute to determining any point in this model? 3. How would we apply this framework to the real world? 4. You are planning to expa ...

Chapter 1 managing changeq1 figure 176 shows how bad an

Chapter 1 Managing change Q1 Figure 1.76 shows how bad an implementation can become. Action needs to be taken to prevent this kind of situation. What would you recommend should be done? Q2 You are the project manager for ...

Free trade and restricted trade - benefits and cost1-2

Free Trade and Restricted Trade - Benefits and Cost 1-2 paragraphs APA format/ no plagarism Using your own words, define both free and restricted trade. What do you feel are the benefits and the cost to having free trade ...

Assignment -consider the following cobb douglas production

Assignment - Consider the following Cobb Douglas production function where Y is maize output, X 1 is labour input, and X 2 is the capital. Data for estimating this equation is given in the Table below. Y = β 0 X 1i β_1 X ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro