AP Micro Game Theory

Quiz
•
Social Studies
•
12th Grade
•
Hard
John Robinson
FREE Resource
15 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
According to the payoff matrix, what will YELLOW do if white goes high?
high
low
2.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
The combination where Firm A advertises and Firm B does not advertise is Nash equilibrium because
it is best for each firm given what the other firm has chosen
the total industry profits are maximized
Firm A has an incentive to change its strategy and chooses not to advertise
it is the best outcome for Firm B regardless of what firm A does
advertising is always the best strategy for Firm A
3.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
The following table shows the profits associated with the pricing strategies of two oligopolistic firms, Agronomia and Farmingdale. Each firm has two possible strategies: to charge a low price or a high price. The first entry in each cell shows the profits to Agronomia and the second the profits to Farmingdale. If the two firms do not cooperate, what will be the profit for each firm?
Agronomia = $50; Farmingdale = $100
Agronomia = $150; Farmingdale = $150
Agronomia = $300; Farmindale = $50
Agronomia = $100; Farmingdale = $100
4.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
Game theory reveals that
each player looks after what is best for the industry.
firms in an oligopoly are not interdependent.
firms in an oligopoly choose their actions without regard for what other firms might do.
the equilibrium might not be the best solution for the parties involved.
if all firms in an oligopoly take the action that maximizes their profit, then the equilibrium will have the largest combined profit of all the firms.
5.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
In game theory, what is a Nash Equilibrium?
A situation where no player can benefit by changing strategies while the other players keep theirs unchanged.
A situation where all players choose the same strategy.
A situation where one player dominates all others.
A situation where players randomly choose their strategies.
6.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
Which of the following is a characteristic of a zero-sum game?
The total benefit to all players in the game adds up to zero.
All players end up with equal payoffs.
The game has no equilibrium.
Players cooperate to achieve the best outcome.
7.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
In the context of game theory, what does 'dominant strategy' mean?
A strategy that is best for a player, no matter what the opponents do.
A strategy that is only effective if all players use it.
A strategy that is never used in equilibrium.
A strategy that is chosen randomly.
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