The dominant strategy allows a firm to
A) obtain the highest benefit, regardless of its rivals' actions.
B) transform a negative-sum game into a positive-sum game.
C) transform a zero-sum game into a positive-sum game.
D) escape from a Prisoners' Dilemma situation.
Answer: A
You might also like to view...
What factors can start a cost-push inflation? What must the Fed's response be for the inflation to continue?
What will be an ideal response?
How will the exchange rate (foreign currency per dollar) respond to a decrease in the relative rate of productivity growth in the United States in the long run?
A) Exchange rates will fall. B) Exchange rates will be unaffected by changes in the relative rate of productivity growth in the United States, both in the short run and in the long run. C) Exchange rates will rise. D) The exchange rate will be affected in the short run, but not in the long run.
If the personal assets of the owners cannot be claimed if the business is bankrupt, the owners are said to have
A) a partnership type of business. B) unlimited liability. C) a proprietorship type of business. D) limited liability.
If the price of steel increases drastically, the quantity of steel demanded by the building industry will fall significantly over the long run because
A) buyers of steel are less sensitive to a price change if they have more time to adjust to the price change. B) profits will fall by a greater amount in the long run than in the short run. C) buyers of steel are more sensitive to a price change if they have more time to adjust to the price change. D) sales revenue in the building industry will fall sharply.