Within a game theory model, if a change in decision-making raises corporation X's profits by $100 and lowers corporation Y's profits by $50, the game is a
A) negative-sum game.
B) zero-sum game.
C) positive-sum game.
D) cooperative game.
Answer: C
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Suppose the demand function for cable TV service is given by QCTV = 15 - 0.25 × PCTV + 0.0005 × M + 0.3 × PSTV, QCTV is the quantity of cable TV demanded (thousands of households), PCTV is the price of cable TV, M is income and PSTV is the price of satellite TV service. All else equal, a $10 increase in the price of satellite TV will cause the quantity of cable TV demanded to:
A. decrease by 3,000 households. B. increase by 3,000 households. C. decrease by 5,000 households. D. increase by 5,000 households.
Public Broadcasting, in its fund drives, often arranges for a corporation to match donations made by its employees. This is likely to ________ the free-rider problem and lead to a ________ level of contribution to the public good.
A. reduce; smaller B. reduce; larger C. increase; smaller D. increase; larger
Suppose a firm uses the following price strategy for every customer. The first two units purchased cost $4 each, and any extra unit costs $3.50. What kind of price discrimination is this?
A) First-degree price discrimination B) Group price discrimination. C) Non-uniform pricing. D) Uniform pricing.
How do taxes and government cash transfer payments alter the measured distribution of income?
a. Taxes, because they are included in the official data on income distribution, are reflected in the data, but cash transfer payments, which redistribute income to lower income households, are not included. b. Cash transfer payments are included in the official data on income distribution, but taxes are not. c. Both taxes and cash transfer payments are included in the official data on income distribution d. Neither taxes or cash transfer payments are included in the official data on income distribution