Refer to Figure 13.2. If the figure is viewed as a two-player game between Oliver and George, there would be
A) no Nash equilibria.
B) one Nash equilibrium where both players end up at the M position.
C) two Nash equilibria, one where Oliver ends up at position L4 and George ends up at position C4, and one where both players end up at position M.
D) five Nash equilibria, each represented by the two players ending up an equal distance from M.
B
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Refer to the above table. Assuming constant opportunity costs, the opportunity cost of producing a bicycle in the United States is ________ while the opportunity cost of producing a bicycle in Mexico is ________
A) 8 computers; 10 computer B) 4 computers; 10 computers C) 5 computers; 2 computers D) 2 computers; 5 computers
To derive the labor demand curve for a particular market, one should ________ for all the firms in the market.
A. vertically sum the marginal product of labor curves B. horizontally sum the value of the marginal product of labor curves C. vertically sum the value of the marginal product of labor curves D. horizontally sum the marginal product of labor curves
Which monetary policy would most likely increase aggregate demand?
a. Increasing the discount rate b. Increasing margin requirements on stock purchases c. Increasing reserve requirements at commercial banks and thrift institutions d. Purchasing government securities in the open market
The wage rate will increase and firms will decrease employment to the point where MRP equals the new wage rate if
A. the demand for labor decreases. B. the supply of labor decreases. C. the supply of labor increases. D. the demand for labor increases.