ECP 3703 Final Exam Questions and
Answers 100% Pass
You own two different energy drink brands: "Blue Cow" and "600 minute
energy." If you reduce the price on "Blue Cow", sales of "600 minute
energy" would - ✔✔Decrease
After acquiring closely substitutable product brands, a firm can
successfully raise prices on both of the brands without losing much of its
total sales because - ✔✔Some of these sales lost by one brand would be
captured by the other
If advertising makes demand of a product less elastic, it makes sense for a
firm to - ✔✔Increase the price of the product
1
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,For a firm to maximize total profits through price discrimination, it should
- ✔✔charge a high price to high-value consumers and a low price to low-
value consumers
Which of the following is an example of the "metering" strategy? - ✔✔A
doll company selling dolls at cost but charging high margins on doll
accessories AND A cell phone company offers free locked in phones but
charges high prices per call
A thief and a security guard are playing a simultaneous game. The thief
will choose whether or not to steal, while the guard will choose whether or
not to be vigilant.
If the thief steals and the security guard is vigilant, the thief gets caught
and suffers a loss of 20, while the security guard gets a bonus worth 15.
However, if the thief steals and the security guard is not vigilant, the thief
does not get caught and gains 15, while the guard loses 5.
2
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,On the other hand, if the thief does not steal and the guard is vigilant, the
guard loses 3 for the effort, while the thief gains nothing.
Finally, if the thief does not steal and the guard is not vigilant, neither one
of them gain anything.
What is the Nash equilibrium of this simultaneous game? - ✔✔The game
has no Nash equilibrium
Two ice cream truck vendors, A and B, are playing a simultaneous pricing
game.
If only one of the vendors prices low, he gets all the customers for a payoff
of 12, while the other vendor gets no customers and a payoff of zero.
3
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, If both vendors price high, they each get a payoff of 6.
If both price low, they each get a payoff of 5.
What is the Nash equilibrium of this game? - ✔✔Both the vendors price
low
Once again, two ice cream truck vendors, A and B, are playing a
simultaneous pricing game.
If only one of the vendors prices low, he gets all the customers for a payoff
of 12, while the other vendor gets no customers and a payoff of zero.
If both vendors price high, they each get a payoff of 6.
If both price low, they each get a payoff of 5.
4
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Answers 100% Pass
You own two different energy drink brands: "Blue Cow" and "600 minute
energy." If you reduce the price on "Blue Cow", sales of "600 minute
energy" would - ✔✔Decrease
After acquiring closely substitutable product brands, a firm can
successfully raise prices on both of the brands without losing much of its
total sales because - ✔✔Some of these sales lost by one brand would be
captured by the other
If advertising makes demand of a product less elastic, it makes sense for a
firm to - ✔✔Increase the price of the product
1
100% Pass Guarantee Katelyn Whitman, All Rights
,For a firm to maximize total profits through price discrimination, it should
- ✔✔charge a high price to high-value consumers and a low price to low-
value consumers
Which of the following is an example of the "metering" strategy? - ✔✔A
doll company selling dolls at cost but charging high margins on doll
accessories AND A cell phone company offers free locked in phones but
charges high prices per call
A thief and a security guard are playing a simultaneous game. The thief
will choose whether or not to steal, while the guard will choose whether or
not to be vigilant.
If the thief steals and the security guard is vigilant, the thief gets caught
and suffers a loss of 20, while the security guard gets a bonus worth 15.
However, if the thief steals and the security guard is not vigilant, the thief
does not get caught and gains 15, while the guard loses 5.
2
100% Pass Guarantee Katelyn Whitman, All Rights
,On the other hand, if the thief does not steal and the guard is vigilant, the
guard loses 3 for the effort, while the thief gains nothing.
Finally, if the thief does not steal and the guard is not vigilant, neither one
of them gain anything.
What is the Nash equilibrium of this simultaneous game? - ✔✔The game
has no Nash equilibrium
Two ice cream truck vendors, A and B, are playing a simultaneous pricing
game.
If only one of the vendors prices low, he gets all the customers for a payoff
of 12, while the other vendor gets no customers and a payoff of zero.
3
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, If both vendors price high, they each get a payoff of 6.
If both price low, they each get a payoff of 5.
What is the Nash equilibrium of this game? - ✔✔Both the vendors price
low
Once again, two ice cream truck vendors, A and B, are playing a
simultaneous pricing game.
If only one of the vendors prices low, he gets all the customers for a payoff
of 12, while the other vendor gets no customers and a payoff of zero.
If both vendors price high, they each get a payoff of 6.
If both price low, they each get a payoff of 5.
4
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