Assume that in a price-fixing game, if Player A breaks the agreement in the first year, she earns $11 while Player B earns $5 . However, if Player A breaks the agreement once, Player B decides to break the agreement for eternity, leaving each to receive $8 per year for the rest of their lives. If they both keep the agreement each receives $9 per year for the rest of their life. If the discount
rate is 120 percent per period:
a. Player A will prefer to break the agreement in the first year.
b. Player A will prefer to break the agreement in the second year.
c. Player A will prefer to keep the agreement throughout her life.
d. Player A will prefer to keep the agreement only for the first five years.
A
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A) an increase in the demand for U.S. dollars and an increase in the exchange rate of Swiss francs per dollar. B) a decrease in the demand for U.S. dollars and a decrease in the exchange rate of Swiss francs per dollar. C) an increase in the supply of U.S. dollars and a decrease in the exchange rate of Swiss francs per dollar. D) a decrease in the supply of U.S. dollars and an increase in the exchange rate of Swiss francs per dollar.
________ is the benefit that a consumer of a good or service receives
A) Marginal private benefit B) Marginal external benefit C) Marginal social benefit D) Both answers A and B are correct.
A college education is a(n)
A. investment in human capital. B. form of innovation. C. public good. D. mediated settlement.
Which of the following statements about a hypothesis is? correct?
A. A hypothesis is another name for a model. B. A hypothesis will always incorporate a value judgment. C. A hypothesis is a statement that could in principle turn out to be incorrect. D. To be called a? hypothesis, a statement must first be shown to be correct.