Game theory is
A. the study of how people behave in strategic situations.
B. the collusion of a few powerful firms to create monopoly power.
C. the act of price-fixing to share markets.
D. the division of a market into non-competitive areas, creating regional monopolies.
A. the study of how people behave in strategic situations.
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Hotelling's model has been used to describe differentiation in the political "market." Suppose that 100 voters are evenly distributed between the extreme left and the extreme right on the political spectrum, and that all voters vote, and they always vote for the candidate closest to them on this spectrum. The numbers on this spectrum represent the number of voters lying to the left of the number. So, at the midpoint, fifty voters lie to the left and fifty to the right. At the extreme right end, all 100 voters lie to the left. 
width="553" />If Candidate Y is running against Candidate Z: A. Both candidates will have an incentive to move to the left. B. Both candidates will have an incentive to move toward each other's position. C. Candidate Y will have an incentive to move to the left, and Candidate Z will have an incentive to move to the right. D. Neither candidate has any incentive to move.
In 2014, the price of peanuts was rising, which led peanut butter sellers and peanut butter buyers to expect the price of peanut butter would rise in the future Consequently, in the current market for peanut butter there was ________ which resulted in a ________ in the price of peanut butter and ________ in the quantity of peanut butter.
A) a decrease in supply of peanut butter and an increase in demand for peanut butter; rise; an increase, decrease or possibly no change B) a decrease in supply of peanut butter and a decrease in demand for peanut butter; rise, fall, or possibly no change; a decrease C) an increase in supply of peanut butter and a decrease in demand for peanut butter; fall; an increase, decrease or possibly no change D) a decrease in supply of peanut butter and an increase in demand for peanut butter; fall; an increase, decrease or possibly no change
Total cost is equal to
a. TFC + TVC. b. TFC – TVC. c. TFC/TVC. d. TVC/TFC.
To complement actions by the Fed to reduce inflation, Congress and the President can cut spending and/or raise taxes
Indicate whether the statement is true or false