Refer to Figure 3.5. Answer the following questions about the game represented in the figure:
a. What type of game is represented by the payoff matrix?
b. Does Donald have a dominant strategy, and if so, what is it?
c. Does Donald have a dominant strategy, and if so, what is it?
d. What is the cooperative solution?
e. What is the Nash equilibrium?
a. This represents a prisoner's dilemma game.
b. Donald's dominant strategy is to Shout.
c. Daisy's dominant strategy is to Shout.
d. The cooperative solution is for each player to Twist.
e. The Nash equilibrium occurs where both players Shout.
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Which of the following is a correct reason for stating that the United States has a fiduciary monetary system? I. Our money is convertible to a fixed amount of silver or gold. II. Our money has a predictable value
A) I only B) II only C) Both I and II D) Neither I nor II
A firm's fixed but avoidable costs are $100,000 and its variable costs are $250 per unit. It produces 50,000 units and prices it at $400 per unit. In the long-run, how low can price go before the firm decides to shut down?
a. $150 b. $252 c. $250.20 d. $400
In this graph, how does the expansionary policy influence short run aggregate supply?
a. It prevents the short run aggregate supply curve from moving.
b. It shifts the short run aggregate supply curve to the left.
c. It shifts the short run aggregate supply curve to the right.
d. It changes the slope of the short run aggregate supply curve.
A firm that is operating at peak efficiency is
A. making a profit in the short run. B. taking a loss in the short run. C. operating at the minimum point of its ATC curve. D. taking a loss in the long run.