In the Nash equilibrium of a prisoner's dilemma:
A. there is unrealized opportunity for both to gain.
B. total economic surplus is maximized.
C. both players have equal payoffs.
D. there is no cash left on the table.
Answer: A
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Which of the following functions are performed by depository institutions?
I. They make long-term loans using short-term deposits, thereby creating liquidity. II. They efficiently gather funds from a large base of depositors. III. They concentrate risk. A) I only B) II only C) III only D) I and II
Plurality voting ___________ the ideal voting-system criteria.
A. meets all B. fails one of C. fails two of D. fails all of
If you owned a small farm, which of the following would most likely be a fixed cost of production in the short run?
A. Hail insurance B. Harvest labor C. Seed D. Fertilizer
In a perfectly competitive market, individual production decisions have no impact on the market. Why does this happen?
a. The industry is unchangeable and thus impervious to outputs. b. The industry is unpredictable and thus resistant to outputs. c. The industry is huge and, in comparison, each firm is very small. d. The industry is small and, in comparison, each firm is huge.