A prisoner's dilemma is a game in which:
A. the players' payoffs are smaller when both play their dominant strategy compared to when both play a dominated strategy.
B. neither player has a dominant strategy.
C. the players' payoffs are larger when both play their dominant strategy compared to when both play a dominated strategy.
D. one player has a dominant strategy and the other does not.
Answer: A
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Which of the following reasons describes the fundamental barrier to entry for the monopoly in the figure?
A) monopoly resources B) government regulation C) the production process D) Both a and b are correct.
A) Sam pays $600 for 30 days of guitar classes. He attends an hour-long class every day. If, instead of attending class, he works at a part-time job, he would be paid $5 an hour. Or, he could work at a fast-food outlet and earn $9 per hour
Once he has already paid a nonrefundable fee of $600 to enroll in the class, what is his opportunity cost of attending each hour of class? b) Suppose workers decide to work more and consume less leisure when their hourly wage rate increases. What could explain this behavior?
Of the three types of price-discrimination, which is impossible to practice in any market in reality?
A) first-degree price discrimination B) zero-degree price discrimination C) third-degree price discrimination D) second-degree price discrimination
If nominal wealth increases faster than real wealth:
A. real wealth must eventually decline. B. society is better off than if nominal wealth growth had matched real wealth growth. C. real wealth will eventually rise faster in order to catch up. D. asset inflation has occurred.