3 An example in which a firm combines products such as a six

3- An example in which a firm combines products, such as a six pack of soda, is called:

Select one:

a. none of the answers

b. block pricing

c. commodity bundling

d. peak-load pricing

4- A condition describing a set of strategies in which no player can improve her payoff for unilaterally changing her own strategy, given the other players strategies:

Select one:

a. nash equilibrium

b. secure strategy

c. dominant strategy

d. none of the above

Question 5

Firms can earn higher profits by charging different prices for the same product or service, this strategy is called

Select one:

a. two-part pricing

b. price discrimination

c. block pricing

d. none of the above

Solution

Solution-

3- An example in which a firm combines products, such as a six pack of soda, is called: Block pricing.

The correct option is B. block pricing.

Reason-

Block pricing is a price plan in which the same products are combined to make profit by making all or making any decisions. By selling the product and selling it as a unit, if the firm sells all units in the unit, then each unit will earn more than one income unit.

4- A condition describing a set of strategies in which no player can improve her payoff for unilaterally changing her own strategy, given the other players strategies: Nash equilibrium.

The correct option is A. Nash equilibrium.

Reason-

Nash Equilibrum is a concept of game theory, where the best result of the game is such a place where any player is encouraged to reflect from his opponents.By changing the policies of the other players due to the policies of the other players, one can describe the policies which can not improve their behavior.

Firms can earn higher profits by charging different prices for the same product or service, this strategy is called Price discrimination.

The correct option is B. Price discrimination.

Reason-

Monopoly companies can sell different products at different prices, even if the difference in prices does not correspond to any particular expense, but affects some customers but others do not. Such a practice is called price discrimination.