Which of the following would make a player more inclined to continue into later stages of the Centipede Game rather than ending the game immediately? (Choose all that apply.)
a. The subgame-perfect equilibrium is to continue as long as possible because the payoffs eventually get much larger.
b. An increase in the chance that your rival has difficulty performing a long chain of deductions
c. An increase in the chance that your rival believes you have difficulty solving a long chain of deductions.
d. Altruism toward one's rival.
b, c, d
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Laura purchased a brand new Pontiac for $20,000. The moment she assumed ownership, and drove it off the lot, its market value immediately fell to $17,500. Is the $2,500 difference in value a sunk cost?
A) No. B) Yes it is, but only if Laura regrets her decision to have purchased the new Pontiac. C) Yes it is, but only if Laura receives no compensating benefit from the new Pontiac. D) Yes it is, but only if Laura decided to immediately resell the car. E) Yes it is, period.
Which of the following options is NOT a characteristic of a proprietorship?
A) single ownership B) unlimited liability C) double taxation D) easy to form and dissolve
A young chef is considering opening his own sushi bar. To do so, he would have to quit his current job, which pays $20,000 a year, and take over a store building that he owns and currently rents to his brother for $6,000 a year. His expenses at the sushi bar would be $50,000 for food and $2,000 for gas and electricity. What are his implicit costs?
a. $26,000 b. $66,000 c. $78,000 d. $52,000 e. $72,000
If the ratio of labor to capital increases, we can expect that labor productivity will increase
a. True b. False Indicate whether the statement is true or false