It is unlikely that players will attain the Stackelberg equilibrium if
a. both players have a dominant strategy.
b. the Stackelberg equilibrium is Pareto preferred to the Nash equilibrium.
c. the second player cannot be assured that the first player is committed to his strategy.
d. there is an advantage to being the second player.
c. the second player cannot be assured that the first player is committed to his strategy.
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The problems that inflation creates are caused almost entirely by
A) corporations. B) greed. C) price searchers. D) uncertainty. E) unions.
Which of the following is NOT true for a perfectly competitive firm in the long run?
A) MR = MC B) MC > LAC C) Price = MC D) SAC = LAC
If average variable cost exceeds average fixed cost at a particular level of output: a. Profits must be positive
b. That fact is meaningless for deciding the quantity of output to produce. c. It is more likely that the output level is low relative to the designed capacity of the production facility than that the output level is low relative to the designed capacity of the production facility. d. Both b and c. are likely true.
Which of the following statements is INCORRECT regarding the properties of information products?
A. In the long run, the producer earns sufficient revenue to cover the opportunity cost of capital. B. The average total cost curve for a firm that sells an information product slopes upward. C. The firm experiences economies of operation in the short run. D. Providing an information product entails incurring relatively high fixed costs.