What is meant by a dominant strategy?
What will be an ideal response?
A dominant strategy is a strategy that is best for a player no matter what his or her opponents do. A rational player will always play a dominant strategy if he or she has one.
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At tax rates higher than the tax rate that maximizes tax revenues along a Laffer curve
A) an increase in tax rates increases tax revenues. B) any variation in tax rates has no effect on tax revenues. C) a reduction in tax rates increases tax revenues. D) a reduction in tax rates reduces tax revenues.
Externalities are defined as
a. any transaction external to the firm b. costs or benefits that fall on third parties c. policies that firms undertake to sell products outside the country d. managers' dealings with stockholders outside the firm e. costs of maintaining plant and equipment to avoid the scrutiny of external auditors
Industries that are truly critical to the national defense should be protected from foreign competition if that is the only way to ensure their existence
a. True b. False Indicate whether the statement is true or false
Which of the following is NOT a macroeconomic question?
A) How does a fiscal stimulus package affect gross domestic product? B) Should Congress enact tougher immigration laws to reduce unemployment? C) Should we have a constitutional amendment requiring the federal government to balance the budget each year? D) Should restaurants be required to list the number of calories for each product on their menus?