The person often credited with inventing modern game theory is
A) John Nash.
B) Albert Einstein.
C) John von Neumann.
D) Isaac Newton.
C
You might also like to view...
Suppose the production of helicopters is an industry characterized by increasing returns to scale and an Argentine firm, Cicare, is the only player in this market. The firm caters to the global market and earns a profit of $10 million. Flettner, a German firm has been considering entering this market for a while, but it is aware that its entry will cause each firm to lose about $4 million
However, a government subsidy allows Flettner to enter the helicopter market and Cicare incurs a loss of $4 million due to its entry. Eventually, Flettner evolves as the monopoly supplier of helicopters while Cicare is forced to shut down. This conclusion rests on which of the following assumptions? a. The German government is experiencing a budget surplus. b. There is low demand for Cicare automobiles in the world market. c. The German government is able to forecast accurately the subsidy required to induce helicopter production. d. The quality of Flettner's helicopters are inferior compared to that of Cicare's. e. The Argentine government is not a proponent of "fair trade," hence does not retaliate by subsidizing Cicare.
Which of the following is an example of a normative, as opposed to positive, statement?
a. Gasoline prices ought to be lower than they are now. b. The federal government should raise taxes on wealthy people. c. The social security system is a good system and it deserves to be preserved as it is. d. All of the above are normative statements.
The demand for dishwashers facing the AllClean Co. is given in the figure above. The firm manufactures dishwashers in two plants. MC1 and MC2 are the marginal cost curves for those two plants. How many dishwashers should the firm produce?
A. 40 B. 50 C. 70 D. 80 E. 100
The type of advertising that emphasizes the features of its product is
A. search advertising. B. informational advertising. C. experience advertising. D. persuasive advertising.