Refer to the below table. In the first game, if firm B doesn't introduce a new product and firm A does, then firm A would be better off if:
Answer the question based on the following payoff matrices for a repeated game involving two firms that are considering introducing new products to the market. The numbers indicate the profit from following either a strategy to introduce a new product or a strategy to not introduce a new product.
A. Both firms introduce new products in game 2
B. Neither firm introduces new products in game 2
C. Firm B reciprocates in game 2
D. Game 2 reaches a Nash equilibrium
B. Neither firm introduces new products in game 2
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President Obama wanted to increase the federal minimum wage.
Answer the following statement true (T) or false (F)
There is scientific evidence to suggest that:
A. agents do not respond to incentives. B. agents respond to incentives. C. agents respond to piece rates but not bonus plans. D. agents respond to incentives only if they can cheat.
Economic losses are a signal to producers
A. That consumer demand is being satisfied. B. That they are not using resources in the best way. C. That consumers are content with the allocation of resources. D. That they are using resources in the most efficient way.
An increase in the demand for peanuts due to changes in consumer tastes, accompanied by an increase in the supply of peanuts as a result of favorable growing conditions, will result in
A) an increase in the equilibrium quantity of peanuts and no change in the equilibrium price. B) an increase in the equilibrium price of peanuts and no change in the equilibrium quantity. C) an increase in the equilibrium price of peanuts; the equilibrium quantity may increase or decrease. D) an increase in the equilibrium quantity of peanuts; the equilibrium price may increase or decrease.