According to the text, everyone shouts at a party in order to be heard. If instead everyone spoke at a normal volume people would still be heard, but people continue to shout because:
A. shouting can be sustained using a tit-for-tat strategy.
B. shouting is a dominated strategy.
C. the payoff matrix is unknown to the people at a party.
D. shouting is a dominant strategy.
Answer: D
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The above table shows Sue's total utility from golf and tennis. If the price of each hour of golf is twice the price of each hour of tennis, and Sue plays four hours of tennis, then Sue plays
A) one hour of golf. B) two hours of golf. C) three hours of golf. D) four hours of golf.
Refer to Figure 5-1. The efficient equilibrium price is
A) $60. B) $50. C) $40. D) < $40.
Expectation damages: a. leave the parties no worse off than was anticipated under the contract
b. are designed to elicit efficient precaution and efficient reliance on promises. c. are readily awarded by the courts d. a through c e. a and c only