A key to analyzing subgame perfect equilibrium strategy in sequential games is
a. predictable behavior
b. an explicit order of play for at least some participants
c. information sets that are known with certainty
d. credible threats clearly communicated
e. randomness
b
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A Purchasing Manager's Index below 50 indicates
A) a declining retail sector. B) a downturn in economic activity. C) an increase in bond prices in the near future. D) a declining manufacturing sector.
When an increase in a network's membership increases the product's value to users, there are
a. network externalities. b. economies of scale. c. natural monopolies. d. diminishing costs.
The Sherman Act:
A. was declared unconstitutional in 1895. B. provided for government regulation of the railroads. C. declared monopoly and restraints of trade to be illegal. D. exempted the railroad and communications industries from the antitrust laws.
Which of the following statements best defines private costs?
A) They are internal in the sense that the buyer or seller must explicitly take them into account. B) They are costs borne by people other than those who commit the action. C) They are synonymous with social costs. D) They represent explicit costs incurred by producers in the private sector.