Once a Nash equilibrium has been found in a game:

A. the players always have an incentive to change their choice.
B. no one in the game can be made better off.
C. the players have no incentive to change their choice.
D. a stable outcome is impossible.


Answer: C

Economics

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Refer to Game Matrix I. What are the dominant strategies in this game?


a. A's dominant strategy is ?, and B's dominant strategy is ?.
b. A's dominant strategy is ?, but B does not have a dominant strategy.
c. B's dominant strategy is ?, but A does not have a dominant strategy.
d. Neither player has a dominant strategy.

Economics

Refer to Figure 10-3. Best friends Laurel and Hardy both enjoy watching romantic comedies and science fiction movies. Based on the diagrams above what can you conclude about their movie preferences?

A) The diagrams do not provide any information about relative preferences. B) They have identical movie preferences. C) Hardy enjoys romantic comedies more than Laurel. D) Hardy enjoys science fiction movies more than Laurel.

Economics

You place $100 in a bank account that pays 8%. If you remove the interest you receive each year you can turn your stock into a flow of

A) $108 per year. B) $100 per year. C) $80 per year. D) $8 per year.

Economics

Why do corporate boards of directors sometimes link top managers' compensation to the corporations' stock prices? How might tying compensation too closely to stock prices create an incentive for corporate fraud

What will be an ideal response?

Economics