Game theory is not useful in understanding perfect competition because in a perfectly competitive market:
A. there are too many firms to be able to model their behavior accurately using game theory.
B. the payoffs to firms' choices are unknown.
C. each firm only cares about its own profit, so there is no interdependence.
D. no single firm can influence the market price, so firms' decisions are not interdependent.
Answer: D
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In the economy of Pandemonia, 500 people have jobs, 500 people are not working but are searching for work, and 1500 people don't work and don't seek work. The unemployment rate is
A) 10 percent. B) 40 percent. C) 50 percent. D) 66 percent. E) none of the above.
Monopolistic competition will include producers of poultry and dairy products
a. True b. False Indicate whether the statement is true or false
A time series data is also called a longitudinal data set.
Answer the following statement true (T) or false (F)
Between 2004 and 2005, the Federal Reserve raised interest rates 11 times. This is an example of
A. contractionary monetary policy. B. discretionary fiscal policy. C. expansionary monetary policy. D. nondiscretionary fiscal policy.