Refer to the payoff matrix. Bob's Burgers and Sam's Sandwiches are competing restaurants in a small town. Both are considering adding pizza to their line of products. If this is a sequential game:
A. whoever moves first to add pizza will discourage the other from adding pizza.
B. neither firm will add pizza, regardless of who moves first.
C. both firms will add pizza, regardless of who moves first.
D. there is only one possible Nash equilibrium for this game.
A. whoever moves first to add pizza will discourage the other from adding pizza.
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A perfectly competitive firm in the short run determines its quantity supplied at various prices by using
a. the portion of its marginal cost curve rising above its average total cost curve b. the portion of its marginal cost curve rising above its average variable cost c. its average variable cost curve d. its average total cost curve e. the portion of its average variable cost curve rising above its average fixed cost curve
If AD excess equals $40 billion and the MPC equals 0.75, then the desired fiscal restraint equals
A. $160 billion. B. $30 billion. C. $10 billion. D. $53.33 billion.
The major difference between propensity score matching and synthetic control is that:
a. propensity score matching requires the researcher to identify qualified donor pools in choosing a control group. b. propensity score matching is an application of the methodology used in the comparative case study. c. synthetic control uses logit regression to match individuals in the treatment group with individuals with similar characteristics to create a control group. d. the way in which the control groups are identified is different.
The potential profit from new technological advancements and innovations
A. gives the public sector a better incentive to make investments into farsighted research. B. provides similar incentives to the private and public sectors with respect to researching new technologies. C. leads to rent-seeking behavior and corruption in government. D. gives the private sector a better incentive to commercialize new technologies.