Exam 16: Business Strategy

For the non-colluding oligopolist, there are two factors that affect the decision to raise production. These factors are the:

At Green Warren High School, Mr. Burns teaches history to the senior class. Mr. Burns takes medication that makes him drowsy. After he distributes an exam to the class, he always falls asleep at his desk. As a result, many of the students cheat on the exams in Mr. Burns' class. The students have never been caught cheating, and, to make things simple, assume that they never will. Mr. Burns also believes in competition among the students, and therefore he grades exams on a relative scale. In other words, students have the incentive to score better than their classmates, and scoring worse than their classmates will always lead to an inferior grade. -According to the information provided, which of the following are problems with grading students relative to their classmates? (i) it creates an incentive to cheat on the exams (ii) as long as at least one student cheats, it penalises all those who are unwilling to cheat (iii) it forces students to follow a sub-dominant strategy

Consider two cigarette companies, PM Inc. and Brown Inc. If neither company advertises, the two companies split the market. If they both advertise, they again split the market, but profits are lower, since each company must bear the cost of advertising. Yet, if one company advertises while the other does not, the one that advertises attracts customers from the other. -According to the information provided, what is PM Inc.'s dominant strategy?

The simple tit-for-tat strategy has been able to dominate many more complex strategies in repeated prisoners' dilemma games.