Refer to the below table. If the firms are playing a sequential game, then
Answer the question based on the following payoff matrix for a duopoly in which the numbers indicate the profit from either opening a coffee shop in a small town or not opening the coffee shop.
A. There is a dominant strategy for this game.
B. There is only one Nash equilibrium for this game.
C. There are two potential Nash equilibrium for this game.
D. Both firms will choose not to open a coffee shop.
C. There are two potential Nash equilibrium for this game.
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Game theory can be used for studying which of the following types of market structure?
A) monopoly B) monopolistic competition C) oligopoly D) perfect competition
With the creation of the Federal Deposit Insurance Corporation, member banks of the Federal Reserve System ________ to purchase FDIC insurance for their depositors, while non-member commercial banks ________ to buy deposit insurance
A) could choose; were required B) could choose; were given the option C) were required, could choose D) were required; were required
We can measure the profits earned by a firm in a competitive industry as
a. (P - ATC) × Q.
b. (P - MC) × Q.
c. MR × MC.
d. (MC - ATC) × Q.
In a market capitalist economy:
A) markets are not competitive. B) individual ownership and decision making are relied upon. C) consumers have few choices. D) the government owns the factors of production.