Question

QUESTION 21

1. When Apple put together a set of mobile apps with its iPhone, it was practicing

   		compacting.
   		a loss leader.
   		tie-in sales.
   		bundling.

1 points   

QUESTION 22

1. 
   
   Refer to the above payoff matrix for the profits (in $ millions) of two firms (A and B) and two pricing strategies (high and low). Which of the following is the outcome of the dominant strategy without cooperation?

   		Both firm A and firm B choose the high price.
   		Firm A chooses the low price while firm B chooses the high price.
   		Both firm A and firm B choose the low price.
   		Firm A chooses the high price while firm B chooses the low price.

1 points   

QUESTION 23

1. Suppose there are four firms in an industry. The market shares of the four firms are 5 percent, 20 percent, 35 percent, and 40 percent. The Herfindahl-Hirschman index for that industry is

   		1,250.
   		6,650.
   		3,250.
   		100.

1 points   

QUESTION 24

1. Commonwealth Edison is the only provider of electricity to many households in the Chicago area. Commonwealth Edison is regulated by the government. This type of regulation is known as

   		the Federal Register.
   		social regulation.
   		the market share test.
   		economic regulation.

Answer 1

21. answer bundling

The practice of selling different items, typically of hardware or software, together as a package. And Apple selling mobile apps with its iPhone.

22. Prevailing procedure is a technique for a player for example best reaction to all procedure profile of other player.

Firm A has prevailing technique of charging low cost since it gives higher result to Firm A regardless of choice of Firm B.

Firm B has additionally prevailing methodology of charging low value in light of higher result.

Answer; Both Firm An and firm B pick the low cost

C

the four firms are 5 percent, 20 percent, 35 percent, and 40 percent . The Herfindahl-Hirschman index for that industry is

Answer. 3250

d.

answer.Economic regulation

Economic regulations are the rules laid by government that decide who can enter a business. It also decides what prices can be charged. This is basically done by government to protect consumers from unfair competition and prices. Commonwealth Edison is the only provider of electricity and is economically regulated by government to protect the interests of consumers