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Please show me the process A. a)in equilibrium, both will charge $4 per hour, b)

ID: 1100818 • Letter: P

Question

Please show me the process

A. a)in equilibrium, both will charge $4 per hour, b) is best for a player, regardless of what strategy other players follow

B. a)in equilibrium, both will charge $5 per hour, b) makes every player better off

C. a)in equilibrium, Sarah will charge $5 per hour; Marisa will charge $4 per hour, b)is optimal

D. a)in equilibrium, Sarah will charge $4 per hour; Marisa will charge $5 per hour, b)not optimal

E. None of the above.

A. a)in equilibrium, both will charge $4 per hour, b) is best for a player, regardless of what strategy other players follow

B. a)in equilibrium, both will charge $5 per hour, b) makes every player better off

C. a)in equilibrium, Sarah will charge $5 per hour; Marisa will charge $4 per hour, b)is optimal

D. a)in equilibrium, Sarah will charge $4 per hour; Marisa will charge $5 per hour, b)not optimal

E. None of the above.

Explanation / Answer

A. a)in equilibrium, both will charge $4 per hour, b) is best for a player, regardless of what strategy other players follow

Acoording to Cooperative Behavior in Oligopoly

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