Answer the following statement(s) true (T) or false (F)
1. The copycat game does not have a pure strategy Nash Equilibrium.
2. When mixed strategies are allowed, the Copycat Game does have a Nash equilibrium.
3. Nash equilibrium is a normative concept.
4. For an outcome to be Pareto optimal, the players' total payoff must be as large as possible.
5. If either player is receiving his maximum payoff, then that outcome is Pareto optimal.
1. True
2. True
3. False
4. False
5. True
You might also like to view...
Which of the following examples illustrates a progressive income tax?
a. I earn $500 and pay $50 in taxes; you earn $1,000 and pay $100 in taxes. b. I earn $500 and pay $50 in taxes; you earn $1,000 and pay $50 in taxes. c. I earn $500 and pay $50 in taxes; you earn $1,000 and pay $80 in taxes. d. I earn $500 and pay $50 in taxes; you earn $1,000 and pay $125 in taxes.
In the simple circular-flow diagram, households
a. are the only decision makers. b. own the factors of production. c. are buyers of inputs. d. consume only some of the goods and services that firms produce.
First-mover advantage is:
A. very important in one-round sequential games. B. likely to lead to a positive-positive outcome. C. most advantageous in a prisoner's dilemma-type game. D. None of these statements is true.
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the short run would be:
A. P3 and Y1. B. P2 and Y1. C. P2 and Y3. D. P1 and Y2.