? In a two-person repeated game, a tit-for-tat strategy is: ? When each player pursues his or her own self-interest without any cooperation. ? When players start off as noncooperative and then c ...

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? In a two-person repeated game, a tit-for-tat strategy is:
? When each player pursues his or her own self-interest without any cooperation.
? When players start off as noncooperative and then cooperate when one or both players
show interest in colluding.
? When players start by cooperating and then mimic the other player's last move .
? When neither player defects.
? Question Points: 3.33333 / 3.33333
? 2
Moral hazard implies that:
? Insured individuals exercise less care because they have less incentive to do so.
? Insured individuals exercise more care because they have less incentive to do so.
? Insured individuals exercise more care because they have more incentive to do so.
? Insured individuals exercise less care because they have more incentive to do so.
? Question Points: 3.33333 / 3.33333

? 3
In a principal-agent relationship
? The principal wants the agent to act on her own behalf.
? The agent wants the principal to act on his behalf.
? The principal wants the agent to act on the behalf of others.
? The agent wants the principal to act on the behalf of others.
? Question Points: 3.33333 / 3.33333
? 4
For jointly owned substitute products, cannibalization leads to MR______MC.
? Higher than
? Lower than
? Equals
? None of the above

? Question Points: 3.33333 / 3.33333
? 5
Three possibilities are equally likely and have payoffs of $6, $12, and $24. The expected
value is:
? $4
? $14
? $6
? $7
? Question Points: 3.33333 / 3.33333
? 6
Which of the following would not be illegal according to the Robinson-Patman Act?
? "Party Packers" getting 10 cents off every pack of ribbon they buy after 1000 units
? "Fred’s Farms" offering 50 cents off a crate of strawberries to retailers to match other
suppliers with similar rates.
? "Sam’s Sandwiches" receiving 5 cents off per pound of cheese
? All of the above

? Question Points: 3.33333 / 3.33333
? 7
Use the table provided to answer the following question. If the firm decides to only offer
the high-end wok, what is the highest price it can charge the chefs?
?
Enlarged View
? $70
? $80
? $90
? $100
? Question Points: 3.33333 / 3.33333
? 8
Which of the following is not an example of risk aversion?
? You lock your garage when you have expensive workshop tools.

? You are more careful when you buy a more expensive car.
? Individuals tend to gamble more with their money when the future is uncertain .
? You only go swimming when the lifeguard is on duty.
? Question Points: 3.33333 / 3.33333
? 9
Use the table provided to answer the following question. If the groups are of equal size
and the firm can only set one price, how should the firm price the high-end wok?
?
Enlarged View
? Price low and sell to both groups.
? Price high and sell only to the professional chefs.
? Price low and sell only to the home users.
? All of the above

? Question Points