According to the textbook, the owners of restaurants encourage tipping in order to:
A. solve a commitment problem with their wait staff.
B. avoid playing a dominated strategy.
C. sustain cooperation in a repeated prisoner's dilemma.
D. insure that their waiters earn enough money.
Answer: A
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Which of the following is TRUE regarding the long run for a firm in monopolistic competition?
A) P = MC = ATC B) P = MC = MR C) ATC = MC = MR D) P = ATC
What is a subgame?
A) It is a simultaneous game embedded in a sequential game. B) It is one that starts at the final decision node of the tree. C) It is one that begins at any decision node of the tree except the first decision node. D) It is one that begins at any node of the tree, including the game itself.
A major difference between stocks and bonds is that
A) bonds pay their owners dividends while stocks pay interest. B) bonds pay their owners interest while stocks pay dividends. C) the interest on a bond depends on the earnings of the corporation and is not guaranteed while dividends on stock are legally required. D) bonds represent ownership while stock represent debt.
Economics is primarily the study of: a. how choices are made in a world of scarcity
b. corporate balance sheets and income statements. c. how to operate a business. d. how to make money in the stock market.