If everyone has a dominant strategy in a simultaneous move game, then the action that is played by that strategy is played in all stages of any finitely repeated version of that game in any subgame perfect equilibrium.
Answer the following statement true (T) or false (F)
True
Rationale: In the last stage, everyone simply plays the dominant strategy Nash equilibrium -- which means there is no reason not to do the same in the second to last stage and so forth.
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Nominal exchange rates differ from real exchange rates in that nominal exchange rates
A) do not correct for differing interest rates across countries. B) do not measure the purchasing power of the currency. C) are fixed, while real exchange rates are flexible. D) are flexible, while real exchange rates are fixed.
Marginal thinking is best demonstrated by: a. choosing to spend one more hour studying economics because you think the improvement in your score on the next quiz will be worth the sacrifice of time. b. deciding to never purchase a coat made with animal skins or furs
c. acquiring all the information relevant to a choice before making that choice. d. measuring all of the costs of a meal against all of the benefits when deciding whether to order a second milkshake.
In a long-run equilibrium in a perfectly competitive market, the average firm earns positive economic profits
a. True b. False Indicate whether the statement is true or false
The indifference curves for nickels and dimes will be
A. a straight line with negative slope. B. a straight line with positive slope. C. concave. D. L-shaped.