What would the Nash equilibrium be in this sequential game?
a. Enter, fight
b. Enter, Accommodate
c. Do not enter, Fight
d. Do not enter, Accommodate
b
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Domestic savings:
A. comes from private households spending less than they earn. B. is equal to domestic income minus consumption spending. C. occurs when government revenues exceed noncapital expenditures. D. All of these are true.
Recall the Application about the behavior of prices in retail catalogs to answer the following question(s). In the Application, findings by Anil Kasyap showed that even though the catalogs listed in the Application were reissued every six months, the prices which were tracked in these retail catalogs:
A. were typically fixed for a year or more. B. changed every month. C. tended to fall during periods of high inflation. D. were not listed due to low rates of inflation.
The person most likely to receive a payment from a corporation in a year of losses is the
A. bondholder. B. investment banker. C. common stockholder. D. preferred stockholder.
A microeconomic model CANNOT be used to
A) evaluate the impact of a price change on a firm's revenue. B) predict the impact of an increase in the minimum wage on unemployment. C) evaluate the fairness of a proposal to nationalize health insurance. D) evaluate the effect of an increase in stadium size on the price of a sport team's tickets.