This exam has two parts.Part 1: Choose 2 of possible 3 quest…

This exam has two parts.Part 1: Choose 2 of possible 3 questions. Questions are worth 15 points each (30 points total)Part 2: Complete 2 of the possible 3 questions in full (120 points total or 60 points each)Total Points Possible: 150 PART 1(30 points-15 each): Choose 2 of the following 3 questions; Part 1 Option 1:An incumbent has the option of engaging in research and development that will give it an advantage if there is entry of another firm. The payoffs of engaging in R&D or not along with the prospect ofentry are summarized in the extensive form game below. Payoffs are written as (Payoff of Incumbent, Payoff of Entrant) i) What is the subgame perfect Nash Equilibrium?ii) Is there a first mover advantage for the incumbent? What about for the entrant? Hint: consider whether or not the incumbent is better off when it moves first or the entrant. Is the entrant better off when it moves first vs the incumbent Part 1 Option 2: In the airline case study, firms were able to publicly submit proposed price increases on future fares and to change these proposed increases if other firms did not match their prices.i) How can this be considered tacit collusion? Be sure to define tacit collusion and explain why such a practice as this may not necessarily be evidence of a conspiracy to coordinate prices.ii) Part of the government’s ruling in this case was to explicitly forbid the practice of being able to suggest prices, and then to rescind them before consumers see them. Explain why this type of behavior was considered conducive to collusion. Part 1 Option 3: One aspect of markets that are conducive to cartel agreements being more sustainable, is that it is easy to detect cheating. i) Explain why it is easier to detect cheating of a fellow cartel member when demand is stable? ii) Why would punishing for a finite number of periods be superior to punishing forever and a particularly useful strategy when demand is volatile?

A young Black man uses an expressive and conspicuous style o…

A young Black man uses an expressive and conspicuous style of walk, talk, and dress to project an aura of pride and control, thereby countering “an externally imposed invisibility” and proving his manhood in an environment with limited opportunities. This survival strategy is best defined as which of the following?