Leona and Bernie have committed a crime. If Leona denies committing the crime, Bernie can lower his penalty from 5 years to 2 years by confessing to the crime
If Leona confesses to the crime, Bernie can lower his penalty from 18 years to 7 years by confessing to the crime. Based on this information, we know with certainty that A) Bernie's dominant strategy is to deny the crime.
B) Bernie has no dominant strategy.
C) Bernie's dominant strategy is to confess to the crime.
D) Bernie's dominant strategy is to confess to the crime only if Leona denies committing the crime.
C
You might also like to view...
Refer to Figure 16-1. Suppose the economy is in short-run equilibrium above potential GDP and wages and prices are rising
If contractionary policy is used to move the economy back to long run equilibrium, this would be depicted as a movement from ________ using the static AD-AS model in the figure above. A) D to C B) A to E C) C to B D) B to A E) E to A
If government spending decreases, which of the following would occur?
a. An increase in GDP, an increase in the price level, an increase in money demand, and an increase in the interest rate b. An increase in GDP, a decrease in the price level, an increase in money demand, and a decrease in the interest rate c. A decrease in GDP, a decrease in the price level, a decrease in money demand, and a decrease in the interest rate d. A decrease in GDP, a decrease in the price level, an increase in money demand, and an increase in the interest rate e. An increase in GDP, an increase in the price level, a decrease in money demand, and a decrease in the interest rate.
In Figure 5.8, if the supply curve moves from S2 to S4,
A. the firm will make a smaller economic profit than they used to. B. the firm will go from making an economic profit to a loss but one that is not big enough to make it want to shutdown. C. the firm will go from making an economic profit to a loss that is big enough to make it want to shutdown. D. the firm will go from making an economic profit to a normal profit.
A regulatory agency concerned with "universal service" must
a. prevent high profits in all markets. b. prevent entry in high-profit markets. c. prevent cross-subsidization. d. guarantee marginal cost pricing.