Answer the following statement(s) true (T) or false (F)
1. An outcome that is Pareto optimal is preferred by both players to all other possible outcomes.
2. A Nash equilibrium need not be Pareto optimal, and a Pareto-optimal outcome need not be a Nash equilibrium.
3. In the Prisoners' Dilemma game, the only outcome that is not Pareto optimal is also the game's only Nash equilibrium.
4. When a game is played sequentially, the first player will have an advantage over the second player.
5. A Cournot equilibrium arises when one player announces his strategy before the other.
1. False
2. True
3. True
4. False
5. False
You might also like to view...
Use the following market data to answer the question below.Price per UnitQuantity Purchased by ConsumerQuantity Sold by Producer$52,0000101,800300151,600600201,400900251,2001,200301,0001,500In the market shown in the table, the marginal benefit of 1,200th unit is
A. $25. B. $10. C. $20. D. $15.
The buyers pay the entire sales tax levied on a good when demand is perfectly ________ or supply is perfectly ________
A) elastic; inelastic B) elastic; elastic C) inelastic; inelastic D) inelastic; elastic
What is an isoquant?
What will be an ideal response?
We know that people tend to overuse common resources. This problem can be viewed as an example of
a. a game in which the players succeed in reaching the cooperative outcome. b. the prisoners' dilemma. c. a situation to which game theory does not apply because of a lack of strategic thinking. d. a situation to which game theory does not apply because of too many decision-makers.