The payoff matrix below shows the payoffs (in millions of dollars) for two firms, A and B, for two different strategies, investing in new capital or not investing in new capital. 
This game is an example of a:
A. credible promise.
B. cartel.
C. game with multiple equilibria.
D. prisoner's dilemma.
Answer: D
You might also like to view...
A difference between the new classical and monetarist models is that expectations in the new classical model are _____ while they are _____ in the monetarist model
a. forward looking; backward looking. b. rational; adaptive. c. correct; mistaken. d. perfectly competitive; imperfectly competitive. e. both a and b.
The poverty line is updated each year for rising prices but not for increasing standards of living
Indicate whether the statement is true or false
The Republic of Zander is a member of the European Union (EU). As an EU member, the Republic of Zander gives cash grants to domestic agricultural producers. Which of the following instruments of trade policy is being used by the government of The Republic of Zander?
A. local content tariff B. import quotas C. ad valorem tariff D. antidumping duties E. subsidies
A higher real interest rate ________ investment spending and ________ consumption spending.
A. increases; decreases B. decreases; decreases C. decreases; increases D. increases; increases