The above figure shows a payoff matrix for two firms, A and B, that must choose between selling basic computers or advanced computers. Firm B's dominant strategy
A) is to make basic computers.
B) is to make advanced computers.
C) is to adopt firm A's strategy.
D) does not exist in this game.
D
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If you knew that an investment was going to pay you $215,892.50 in 10 years, and you knew that the annual interest rate over that time would be 8 percent, you could calculate the present value to be:
A. $100,000. B. $150,000. C. $125,000. D. $80,000.
Supply-side tax cuts tend to benefit the rich because tax cuts
a. on income tend to benefit high income earners more than low income earners. b. on savings benefit high income earners who do most of the personal saving. c. for capital formation tend to benefit those with the means to accumulate capital. d. on capital gains tend to benefit those with larger financial assets. e. All of the above are correct.
At existing wage rates, hospitals face a shortage of registered nurses (RNs). Some studies have suggested that an increase in RN wages will actually reduce the hours supplied by existing RNs, making it more difficult for hospitals to find RNs. Which of the following is likely the cause of these findings?
A. Constant marginal productivity B. The cost disease C. A substitution effect larger than the income effect D. An income effect larger than the substitution effect
Suppose Danielle receives the highest grade in the class on the first exam in her economics course. Regression to the mean implies that Danielle:
A. is likely to get an A in the class. B. isn't likely to do as well on the second exam. C. is likely to do even better on the second exam. D. is unlikely to forget the material she studied for the exam.