Table 1 Wal-Mart\'s (W) Choices Low price High Price W$10,000 profit w: $5,000 p
ID: 1128789 • Letter: T
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Table 1 Wal-Mart's (W) Choices Low price High Price W$10,000 profit w: $5,000 profit Target's (T Choices T: $100 prolt 1: $14000 prolt W: $14.000 profit W: $7000 profit T: $5,000 profit T: $7,000 profit Low price Table 1 shows strategies for the popular PlayStation 4. the payoff matrix for Wal-Mart and Target from every combination of 47. Refer to Table 1. Assuming that Walmart and Target do not cooperate, following is true? A. Walmart's dominant strategy is to charge a high price while Target's dom strategy is to charge a low price. B. Both Target and Walmart's dominant strategy is to charge a low price C. Both Target and Walmart's dominant strategy is to charge a high price. D. Walmart's dominant strategy is to charge a low price while Target's dom strategy is to charge a high price. 48. Refer to Table 1. What is the Nash equilibrium in this game? A. Both Walmart and Target charging a low price. B. Both Walmart and Target charging a high price. C. Walmart charging a low price and Target charging a high price. D. There is no Nash equilibrium in this game. . The short-run supply curve for a perfectly competitive firm is its marginal cost curve above the horizontal axis. B. average cost curve above the horizontal axis. C. marginal cost curve above its shutdown point. D. average cost curve above its shutdown point.Explanation / Answer
47) Option c is correct (No matter what the other firm chooses, each firm would be better off when it charges a high price)
48) Option b is correct (Charging a high price is the dominant strategy for both the firms)
49) Option c is correct
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