MGEA02H3 Midterm: MGEA02 Term Test 1 2010 Fall Solution

By using backward induction, the perfect strategies and payoffs of players 1,2 and 3 are respectively: A. [(a, d, I), (b, C, G), (e, F, h)] → (-1, 6, 3) and [(A, d, I), (b, C, G), (e, F, H)] → (4,4,4). B. It is not possible to get such strategies C. [(A, d, I), (e, F, H), (b, C, G)] → (-1, 6, 3), [(a, D, i), (E, f, H), (b, C, G)] → (10, 8, 7) and [(a, d, I), (e, f, H), (b, c, G)] → (11,5,3). D. [(A, d, I), (e, F, H), (b, C, G)] → (-1, 6, 3)

12. If this firm faces a price of $38, the number of units it will produce per day in the short run is: A) 4 B) 5 C) 6 D) 7 E) 8 19 MC=42+2 G) 10 H) 11 1) 12 J) none of the above 38- 49,+2 9- 13. This firm's shut down price is: B) $8 C) $10 D) $11 E) $12 H) $15I ) $16 J) none of the above AVC= 2 F) $13 AVC=29 +2+1

13. This firm's shut down price is: A $3 B) $8 C) $10 G) $14 H) $15 I) $16 D) $11 E) $12 J) none of the above F) $13 AVC AVC