A cooperative equilibrium results when firms
A) choose a strategy by random chance.
B) choose the best strategy regardless of what other players do.
C) choose the strategy that minimizes the payoff to other players.
D) choose the strategy that maximizes the total game payoff.
D
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Suppose Marquette Bank and Trust has $10 million in total deposits and the required reserve ratio is 7%. How many dollars must the bank keep in its vaults or on deposit at a Federal Reserve Bank?
A) $9.3 million B) $7 million C) $930,000 D) $700,000 E) None of the above—it's the bank's own choice.
A voucher can eliminate the deadweight loss and lead to an efficient outcome if the value of the voucher equals the ________ of the good
A) marginal external benefit B) marginal social benefit C) marginal private benefit D) marginal social cost
At his profit-maximizing level of output, a monopolist’s average total cost curve is tangent to his demand curve. The monopolist
A. is earning a negative economic profit. B. may or may not be earning a negative economic profit. C. is earning zero economic profit. D. is earning a positive economic profit.
Private disposable income equals
A) GNP - taxes + transfers + interest. B) NNP - taxes + transfers + interest. C) national income - taxes + transfers + interest. D) national income - taxes - transfers + interest.