In the prisoner's dilemma game:
A. a cooperative strategy can lead to a more beneficial outcome for both players.
B. a noncooperative strategy will lead to a positive-positive outcome.
C. a stable outcome is impossible.
D. neither player has a dominant strategy.
A. a cooperative strategy can lead to a more beneficial outcome for both players.
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With a linear inverse demand function and the same constant marginal costs for both firms in a homogeneous product Stackelberg duopoly, which of the following will result?
A. QL = 2QF. B. Profits of leader > Profits of follower. C. Profits of leader > Profits of follower and QL = 2QF. D. PL > PF.
What is the main purpose of the Federal Open Market Committee (FOMC)?
What will be an ideal response?
Nick has $300 a month to spend on detailing his sports car or buying bottles of good wine. It costs $100 to have his car detailed and $50 for a bottle of wine. He currently buys four bottles of wine and has his car detailed once a month. If the price of detailing his car decreased to $75, Nick's budget constraint:
A. would rotate and change slope because relative prices have changed. B. would shift straight outward, because he is relatively wealthier. C. One cannot determine what would happen without knowing Nick's marginal utility of each good. D. would shift straight inward because he is relatively wealthier.
If supply increases and demand decreases, the new equilibrium price will be ________ and the new equilibrium quantity will be ________.
A. lower; uncertain B. higher; higher C. lower; lower D. higher; uncertain