QUESTIONS FOR CRITICAL THINKING 5
Salvatore Chapter 10:
a. Discussion Questions: 3 and 8.
b. Problems: 1 and 14.
Note:
1. P1: Use 70 instead of 70% in your Herfindahl index calculation (p.427).
Froebet al. Chapter 10:
a. Individual problems: 10-4.
Salvatore Chapter 11:
a. Discussion Questions:11and 12.
b. Problems: 2, 6, and 10.
Note:
1. DQ12:
2. P10(a): The strategies for firm A are low price and high price and the strategies for firm B are enter and don’t enter. What is the best (optimal) strategy for each firm?
3. P10(b) is asking whether firm A would use the low price as a threat if firm B enters.
Froebet al. Chapter 15:
a. Individual problems: 15-4 and 15-5.
Note:
1. P15-5: Part of the payoff matrix looks like the following:
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