If there is no single strategy that is best regardless of other players’ behavior:
A. there is no dominant strategy.
B. the dominant strategy will be to defect.
C. a noncooperative equilibrium is the only possible outcome.
D. the game is called a Prisoners’ dilemma.
A. there is no dominant strategy.
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Use the following figure to answer the question below.
The combination of sixty-five pounds of corn and fifteen pounds of green beans is
A. not efficient. B. not attainable but efficient. C. attainable and inefficient. D. not attainable.
In order for the first player to move in a sequential game to be able to gain an advantage from making the first move, the player must:
A) possess a dominant strategy that is better than the other player's dominant strategy. B) be able to achieve a higher maximum payoff than the other player. C) follow the same strategy he would pursue in a Nash equilibrium. D) be able to make a credible commitment to the strategy.
The figure below illustrates the impact of an export subsidy as imposed by a large country. No imports are permitted.
Which of the following correctly identifies the net change in national welfare due to the provision of the export subsidy by the domestic government?
A. The net loss in well-being for the exporting country is area (b + d). B. The net gain in well-being for the exporting country is area (b + d + f + g + i +j). C. The net loss in well-being for the exporting country is area (b + d + f + g + h + i + j). D. The net gain in well-being for the exporting country is area c.
The imposition of a unit excise tax on red wine will
A) lower equilibrium price and quantity in the market. B) increase equilibrium quantity and price in the market. C) lower equilibrium quantity and raise equilibrium price in the market. D) raise equilibrium quantity and lower equilibrium price in the market.