Refer to the scenario above. If the colleagues had decided on a fairness penalty of $5,000 before committing the crime, ________
A) this game will not have a Nash equilibrium
B) this game will have multiple Nash equilibria
C) this game will have multiple dominant strategy equilibria
D) this game will have a unique Nash equilibrium
B
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The leverage ratio is calculated as
a. assets minus liabilities. b. assets divided by bank capital c. the reciprocal of the required reserve ratio d. the required reserve ratio multiplied by bank capital.
Because a monopolistic competitor has some monopoly power, advertising to increase that monopoly power makes sense as long as:
A. the marginal cost of advertising is positive. B. the marginal cost of advertising exceeds the marginal benefit of advertising. C. the marginal benefit of advertising is positive. D. the marginal benefit of advertising exceeds the marginal cost of advertising.
In a mixed strategy:
A. moves can be predicted. B. the order of who chooses first is mixed. C. players try to avoid demonstrating a pattern. D. the payoffs are mixed during each round.
The domestic demand and supply for sugar are Qd = 60,000 ? 400P and QSD = 20,000 + 500P. The foreign supply is QSF = 20,000 + 100P. Suppose an import quota of 13,000 is imposed in the domestic market. What will be the new market price of sugar?
A. $30 B. $15 C. $45 D. $20