tory Bookmarks Profiles Quiz: Module 5 Qu x com/courses/111015/quizzes/852942/take To 9 7 C Tab Window Help Course Modules: Ex Topic: Planet Mon x | For the remaining questions consider two gas stations competing as an oligopoly. There are the only two gas stations in a small town. Each week they must simultaneously display their prices choosing between a high price and a low price. The payoff matrix below displays the weekly profits earned by the gas stations if they choose the various prices. Shell Decisions tv High Price Low Price Low Price NIDZA O V High Price S: $5,000 C: $5,500 (a) If Shell knows Chevron will choose the HIGH PRICE, what price should Shell choose? Low Price S: $7,500 C: $1,500 (b) If Shell knows Chevron will choose the LOW PRICE, what price should Shell choose? Low Price Aa Chevron Decisions (c) Does Shell have a dominant strategy? If so, what is it? Their dominant strategy is to Q Search Securify Module 5 Practice. x | Module 5 Lecture X (d) If Chevron knows Shell will choose the HIGH PRICE, what price should Chevron choose? O MacBook Pro Low Price S: $1,000 C: $8,000 S: $3,000 C: $2,800 ☆ courtneycelaya +
tory Bookmarks Profiles Quiz: Module 5 Qu x com/courses/111015/quizzes/852942/take To 9 7 C Tab Window Help Course Modules: Ex Topic: Planet Mon x | For the remaining questions consider two gas stations competing as an oligopoly. There are the only two gas stations in a small town. Each week they must simultaneously display their prices choosing between a high price and a low price. The payoff matrix below displays the weekly profits earned by the gas stations if they choose the various prices. Shell Decisions tv High Price Low Price Low Price NIDZA O V High Price S: $5,000 C: $5,500 (a) If Shell knows Chevron will choose the HIGH PRICE, what price should Shell choose? Low Price S: $7,500 C: $1,500 (b) If Shell knows Chevron will choose the LOW PRICE, what price should Shell choose? Low Price Aa Chevron Decisions (c) Does Shell have a dominant strategy? If so, what is it? Their dominant strategy is to Q Search Securify Module 5 Practice. x | Module 5 Lecture X (d) If Chevron knows Shell will choose the HIGH PRICE, what price should Chevron choose? O MacBook Pro Low Price S: $1,000 C: $8,000 S: $3,000 C: $2,800 ☆ courtneycelaya +
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
100%
Transcribed Image Text:tory Bookmarks Profiles
Quiz: Module 5 Qu x
com/courses/111015/quizzes/852942/take
To
9
7 C
Tab Window Help
Course Modules: Ex Topic: Planet Mon x |
For the remaining questions consider two gas stations competing as an oligopoly. There are
the only two gas stations in a small town. Each week they must simultaneously display their
prices choosing between a high price and a low price. The payoff matrix below displays the
weekly profits earned by the gas stations if they choose the various prices.
Shell Decisions
tv
High Price
Low Price
Low Price
NIDZA O
V
High Price
S: $5,000
C: $5,500
(a) If Shell knows Chevron will choose the HIGH PRICE, what price should Shell choose?
Low Price
S: $7,500
C: $1,500
(b) If Shell knows Chevron will choose the LOW PRICE, what price should Shell choose?
Low Price
Aa
Chevron Decisions
(c) Does Shell have a dominant strategy? If so, what is it? Their dominant strategy is to
Q Search Securify
Module 5 Practice. x | Module 5 Lecture X
(d) If Chevron knows Shell will choose the HIGH PRICE, what price should Chevron choose?
O
MacBook Pro
Low Price
S: $1,000
C: $8,000
S: $3,000
C: $2,800
☆
courtneycelaya
+
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