If there are exactly five seller of gasoline..... The below represents two firms (Firm A and Firm B) that operate in the same industry. Each firm must decide how much output to produce this year.The profits for each firm are shown in the table below (Profit for Firm A and Profit for Firm B).Firm BQ=7Q=8Firm AQ=7(20,14)(15,15)Q=8(15,18)(13,20)Does Firm B have a dominant strategy, and if so at what quantity?No, because it depends on what quantity firm B chooses.Yes, at a quantity of 8.Yes, at a quantity of 7.No, because it depends on what quantity firm A chooses. The table shows the town of Driveaway's demand schedule for gasoline. Assume the town's gasoline seller(s) incurs a cost of $4for each gallon sold, with no fixed cost.QuantityPriceTotal Revenue(Gallons)(Dollars per gallon)(Dollars)8507350100660015075020048002503750If there are exactly five sellers of gasoline in Driveaway and if they collude, then which of the following outcomes would be mostprofitable for the sellers?Each seller will sell 30 gallons and charge a price of $5.Each seller will sell 20 gallons and charge a price of $6.Each seller will sell 10 gallons and charge a price of $7.O Each seller will sell 40 gallons and charge a price of $4.

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The below represents two firms (Firm A and Firm B) that operate in the same industry. Each firm must decide how much output to produce this year. The profits for each firm are shown in the table below (Profit for Firm A and Profit for Firm B). Firm B Q=7 Q=8 Firm A Q=7 (20,14) (15,15) Q=8 (15,18) (13,20) Does Firm B have a dominant strategy, and if so at what quantity? O No, because it depends on what quantity firm B chooses. Yes, at a quantity of 8. O Yes, at a quantity of 7. O No, because it depends on what quantity firm A chooses.

The below represents two firms (Firm A and Firm B) that operate in the same industry. Each firm must decide how much output to produce this year. The profits for each firm are shown in the table below (Profit for Firm A and Profit for Firm B). Firm B Q=7 Q=8 Firm A Q=7 (20,14) (15,15) Q=8 (15,18) (13,20) Does Firm B have a dominant strategy, and if so at what quantity? O No, because it depends on what quantity firm B chooses. Yes, at a quantity of 8. O Yes, at a quantity of 7. O No, because it depends on what quantity firm A chooses.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

If there are exactly five seller of gasoline.....

The below represents two firms (Firm A and Firm B) that operate in the same industry. Each firm must decide how much output to produce this year.
The profits for each firm are shown in the table below (Profit for Firm A and Profit for Firm B).
Firm B
Q=7
Q=8
Firm A
Q=7
(20,14)
(15,15)
Q=8
(15,18)
(13,20)
Does Firm B have a dominant strategy, and if so at what quantity?
No, because it depends on what quantity firm B chooses.
Yes, at a quantity of 8.
Yes, at a quantity of 7.
No, because it depends on what quantity firm A chooses.

The table shows the town of Driveaway's demand schedule for gasoline. Assume the town's gasoline seller(s) incurs a cost of $4
for each gallon sold, with no fixed cost.
Quantity
Price
Total Revenue
(Gallons)
(Dollars per gallon)
(Dollars)
8
50
7
350
100
6
600
150
750
200
4
800
250
3
750
If there are exactly five sellers of gasoline in Driveaway and if they collude, then which of the following outcomes would be most
profitable for the sellers?
Each seller will sell 30 gallons and charge a price of $5.
Each seller will sell 20 gallons and charge a price of $6.
Each seller will sell 10 gallons and charge a price of $7.
O Each seller will sell 40 gallons and charge a price of $4.

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