A game involving two players with two possible strategies is a prisoner's dilemma if each player has a dominant strategy and:
A. neither player plays their dominant strategy.
B. each player's payoff is higher when both play their dominant strategy than when both play their dominated strategy.
C. each player's payoff is higher when both play their dominated strategy than when both play their dominant strategy.
D. there is a Nash equilibrium that yields the highest payoff for both players.
Answer: C
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Fatz Confectionery is a candy company that operates at the risk of unlimited liability for its many owner in case, for instance, all of its former employees win a class action lawsuit because of "sugar-lung" developed over decades of working the
Thus Fatz is a A) proprietorship. B) partnership. C) either of the above. D) neither of the above.
A shortage occurs whenever
a. quantity demanded exceeds quantity supplied at the equilibrium price b. price is less than equilibrium price c. quantity demanded is less than quantity supplied d. goods are scarce e. some of the people who need the product are not willing and able to buy it at the equilibrium price
Which of the following is most important if you want to achieve high earnings?
What will be an ideal response?
Suppose that in October the price of a cup of cafe latte was $2.50 and 400 lattes were consumed. In November the price of a latte was $2.00 and 600 lattes were consumed. What might have caused this change?
A) The price of coffee beans (an input of production of cafe lattes) fell. B) The price of coffee beans (an input of production of cafe lattes) rose. C) The price of tea (a substitute for cafe lattes) rose. D) The price of tea (a substitute for cafe lattes) fell.