The problem for the prisoners in the prisoners' dilemma game in the above table is that
A) the Nash equilibrium is not the best outcome.
B) there is no equilibrium outcome.
C) neither prisoner has a workable strategy.
D) None of the above answers is correct.
A
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What was the Plaza Agreement about?
What will be an ideal response?
The demand for a product is likely to be more elastic when
a. the share of the total budget spent on the product is small. b. more complementary products are available. c. the consumer has a short time to adjust to price changes. d. more good substitutes for the product are available.
Suppose that Julia receives a $20 gift card for the local coffee shop, where she only buys lattes and muffins. If the price of a latte is $4 and the price of a muffin is $2, then we can conclude that Julia:
A. should only buy muffins. B. should only buy lattes. C. can buy 5 lattes or 10 muffins if she chooses to buy only one of the two goods. D. can buy 5 lattes and 10 muffins with her $20 gift card.
Using the above figure, the perfectly competitive firm in the diagram will earn an economic profit if the market price is
A. P1. B. P2. C. P3. D. P4.