Ann Taylor and Gap are two clothing companies that must decide on the leading color palette for next season. Their sales depend on the choice of color they make as well as the choice their competitor makes
Their sales are summarized in the payoff matrix above. Using the payoff matrix A) the only Nash Equilibrium is for both companies to choose pink.
B) the only Nash Equilibrium is for both companies to choose orange.
C) the Nash Equilibrium is for one company to choose pink while the other company chooses orange.
D) there are two Nash Equilibria: either both companies choose pink or both choose orange.
A
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To calculate the time required for real GDP to double, we _____
a. divide the annual growth rate by 72 b. divide 72 by nominal GDP c. divide real output by 72 d. divide 72 by the annual growth rate e. multiply real GDP by 72
Justin is trying to decide whether he wants to spend a $50 birthday check on a new DVD player or tickets to a concert. If he chooses the DVD player, what is the opportunity cost of this decision?
A. Birthday check B. DVD player C. Concert tickets D. $50
Compare and contrast the prisoners’ dilemma and the oligopolists’ dilemma.
What will be an ideal response?
To grow and prosper, less-developed countries must not:
A. invest in human capital. B. build a strong infrastructure. C. shift resources out of the production of consumer goods and into the production of capital goods. D. shift resources out of the production of capital goods and into the production of consumer goods