Refer to the payoff matrix below. In reference to the Nash equilibrium/equilibria in this game, which of the following is true?
Camp with Us and Happy Campers compete in the market for campers. Each firm must decide each season if they are going to offer special financing or not. The above payoff matrix shows each firm's net economic profit at each pair of strategies.
A) Camp with Us Offer Financing and Happy Campers Do Not Offer Financing is a Nash equilibrium.
B) Camp with Us Do Not Offer Financing and Happy Campers Do Not Offer Financing is a Nash equilibrium.
C) There are no Nash equilibria in this game.
D) Camp with Us Offer Financing and Happy Campers Offer Financing is a Nash equilibrium.
A) Camp with Us Offer Financing and Happy Campers Do Not Offer Financing is a Nash equilibrium.
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An increase in the working-age population results in a
A) rightward shift of demand for labor curve and an increase in potential GDP. B) rightward shift of the demand for labor curve and no change in potential GDP. C) rightward shift of the supply of labor curve and an increase in potential GDP. D) leftward shift of the supply of labor curve and a decrease in potential GDP.
As income taxes rise, disposable income __________, causing __________ the AD curve
A) increases; movement down along B) increases; a rightward shift of C) decreases; movement up along D) decreases; a leftward shift of
Alexander Hamilton used the infant-industry argument to support trade restrictions
Indicate whether the statement is true or false
Which of the following statements about a perfectly competitive market is INCORRECT?
A. There are many sellers, each supplying a small quantity. B. There are many buyers, each purchasing a small quantity. C. The market sells homogeneous products. D. Buyers and sellers cannot enter exit the market freely.