Strategic entry deterrence:

When participants in a game are in Nash equilibrium:

Which of the following are barriers to entry?

Use the following to answer this question.  A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results: Qd = 25,000 – 5,000P + 25M Qs = 240,000 + 5,000P – 2,000Pi where P is price, M is income, and Pi is the price of a key input.  The forecasts for the next year are  M = $15,000 and  Pi = $20.  Average variable cost is estimated to be AVC = 14 – 0.008Q + 0.000002Q2.  Total fixed cost will be $6,000 next year. What is the profit-maximizing output choice for the firm?

In a one-time prisoners’ dilemma decision:

Use the following to answer this question.  A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results: Qd = 25,000 – 5,000P + 25M Qs = 240,000 + 5,000P – 2,000Pi where P is price, M is income, and Pi is the price of a key input.  The forecasts for the next year are  M = $15,000 and  Pi = $20.  Average variable cost is estimated to be AVC = 14 – 0.008Q + 0.000002Q2.  Total fixed cost will be $6,000 next year. What is the price forecast for next year?

Use the following payoff table for Hardaway Corporation and Paxton Industries to answer this question.  These two firms must make simultaneous pricing decisions.  They can choose low, medium, or high prices.  The payoffs given are in thousands of dollars of profit per month, with the left-hand payoff in each cell applying to Hardaway and the right-hand payoff applying to Paxton. After the first round of eliminating dominated strategies for both firms:

(LO 10.9) If the facts presented to the magistrate when requesting a search warrant establish probable cause to believe a person has committed a crime…

(LO 10.8) When conducting a vehicle inventory, it is reasonable to open closed containers…

(LO 4.2.1) In Texas, who makes (writes) the laws?