Initially the two vendors set up at the ¼ -mile mark and the ¾-mile mark in order for each to minimize its transportation costs. Eventually they both locate at the ½-mile mark. Which of the following statements is true?
a. Both vendors raised their transportation costs by moving to the center.
b. The initial setup is the Nash equilibrium.
c. The initial setup is a stable equilibrium.
d. Vendor A lowered its transportation costs by moving to the center.
a. Both vendors raised their transportation costs by moving to the center.
You might also like to view...
The economic way of thinking assumes
A) people act selfishly. B) people act altruistically. C) people act to promote the projects in which they are interested. D) people do not act at all; they merely react to the environment around them.
Which type of investor is most likely to have a diversified portfolio?
A) risk averse B) risk loving C) risk neutral D) risk tolerant
Unemployment insurance cannot eliminate the national costs of lost output due to unemployed labor
a. True b. False Indicate whether the statement is true or false
PZX Corporation has the opportunity to undertake an investment project that will cost $10,000 today and yield the company $13,310 in 3 years. PZX will forgo the project if the interest rate is higher than 10 percent
a. True b. False Indicate whether the statement is true or false