Reaching a Nash equilibrium means that:
A. there is no stable outcome to the game.
B. the players will never reach a positive-positive outcome.
C. a stable outcome has been reached.
D. each player has achieved their highest payoff in the game.
Answer: C
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The monopolist's input demand curve is equal to its
A) variable cost curve. B) marginal cost curve. C) average cost curve. D) marginal revenue product curve.
Suppose that price is below the minimum average total cost but above the minimum average variable cost. In the short run, a firm that is a price taker would:
A. immediately shut down and get out of the industry. B. continue to produce a quantity such that marginal revenue equals marginal cost. C. shut down temporarily, in hopes of restarting in the near future. D. cut price and expand output in hopes of achieving economies of scale
The "Chain Store Act" is a name given to the
A) Clayton Act. B) Federal Trade Commission Act. C) Robinson-Patman Act. D) Sherman Antitrust Act.
"All available information" in the definition of rational expectations means that
a. agents use all possible information that could be out there. b. agents use all possible public information that could be out there. c. agents use all information that is relevant. d. agents use all information that is available in which the marginal benefits of the information are greater than the marginal costs of gathering the information.