9. Consider the following statements: I. Every game has at least one pure-strategy Nash equilibrium. II. If the game of rock-paper-scissors were played sequentially, the first mover would have an ad- vantage. III. Stackelberg leader can earn higher profit than a Stackelberg follower. IV. Cournot oligopoly generates higher deadweight loss the fewer firms there are in the market. V. Under Bertrand duopoly, firms selling identical goods can never earn positive profits. Which of the above statements are FALSE? (a) (I) and (II) and (III) (b) (I) and (II) and (V) (c) (I) and (IV) and (V) (d) (II) and (III) and (IV) (e) (II) and (III) and (IV) and (V) Answer: 9b.

9. Consider the following statements: I. Every game has at least one pure-strategy Nash equilibrium. II. If the game of rock-paper-scissors were played sequentially, the first mover would have an ad- vantage. III. Stackelberg leader can earn higher profit than a Stackelberg follower. IV. Cournot oligopoly generates higher deadweight loss the fewer firms there are in the market. V. Under Bertrand duopoly, firms selling identical goods can never earn positive profits. Which of the above statements are FALSE? (a) (I) and (II) and (III) (b) (I) and (II) and (V) (c) (I) and (IV) and (V) (d) (II) and (III) and (IV) (e) (II) and (III) and (IV) and (V) Answer: 9b.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter15: Imperfect Competition

Section: Chapter Questions

Problem 15.8P

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