Solved by verified expert :2) Product compatibility applies to products of different firms
that
A) are complementary.
B) are substitutable.
C) have no network effects.
D) none of the above
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3) Beta videocassettes had the highest degree of product
compatibility with A) VHS videocassettes.
B) audiocassettes.
C) videocassette players. D) CD players.
4) The situation in which firms choose incompatible product formats
is called
A) the prisoners’ dilemma.
B) a Tweedle Dee-Tweedle Dum game.
C) Battle of the Sexes.
D) a cartel.
5) A Tweedle Dee-Tweedle Dum outcome occurs when
A) firms earn highest profits by adopting different product formats.
B) firms earn highest profits by adopting the same product format.
C) firms cheat after forming a cartel.
D) firms earn highest profits by cooperation.
6) A Battle of the Sexes outcome occurs when
A) firms earn highest profits by adopting different product formats.
B) firms earn highest profits by trying to coordinate but cannot
agree on how to do so.
C) firms earn highest profits by adopting either male or female
product formats.
D) firms cooperate as long as other firms cooperate, but if anyone
cheats, they cut the price until the cheater reverts to cooperation.
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7) The situation in which firms wish to coordinate but cannot agree
on how to do so is called A) the prisoners’ dilemma.
B) a Tweedle Dee-Tweedle Dum
game. C) Battle of the Sexes.
D) a cartel.
8) Which of the following games yields an outcome in which two firms
would simultaneously be willing to adopt a compatible product format?
A) the prisoners’
dilemma
B) Tweedle Dee-Tweedle Dum
C) Battle of the Sexes
D) none of the above
9) Which of the following best describes the Battle of the Sexes?
A) Two firms choose incompatible product formats.
B) Two firms choose one compatible product format.
C) Two firms wish to coordinate on one compatible product format but
cannot agree on which one.
D) Two firms choose to engage in a noncooperative game.
10) Which of the following best describes the Tweedle Dee-Tweedle
Dum outcome?
A) Two firms choose incompatible product formats.
B) Two firms choose one compatible product format.
C) Two firms wish to coordinate on one compatible product format but
cannot agree on which one.
D) Two firms choose to engage in a noncooperative game.
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11) In the Battle of the Sexes, profits are the highest if
A) the two firms choose incompatible product format.
B) the two firms choose to adopt one particular product format.
C) the two firms do not cooperate on the product format.
D) none of the above
