Economists use game theory to predict the behavior of oligopolists. Which of the following is crucial for the success of the analysis?
A. Determine whether the problem considered is of a one-shot or a repeated nature.
B. Make sure the payoffs reflect the true payoffs of the oligopolists.
C. Determine whether the oligopolists move simultaneously or sequentially.
D. All of the statements associated with this question are correct.
Answer: D
You might also like to view...
According to the real business cycle theory, an increase in an input price, such as oil, will
A) increase both real Gross Domestic Product (GDP) and the price level. B) increase real Gross Domestic Product (GDP) but not change the price level. C) decrease real Gross Domestic Product (GDP) but increase the price level. D) decrease both real Gross Domestic Product (GDP) and the price level.
The equation of exchange states that the money value of GDP transactions must be equal to the product of the average stock of money and velocity.
Answer the following statement true (T) or false (F)
Which of the following statements is true about the United States over the past fifty years?
A) There is no evidence of political business cycles in the United States. B) The debt-to-GDP ratio has been roughly constant. C) Under either party, output growth has been generally higher in the year preceding an election than in other years. D) none of the above
In 1971, the U.S. government banned cigarette advertising on radio and television. After the ban was imposed, an economist would predict that the price of magazine ads would
A. increase. B. decrease. C. increase, but only for cigarettes. D. not be affected by this ban.