Refer to Table 14-4. What is the Nash equilibrium in this game?
A) Alistair increases its advertising budget, but Baine does not.
B) There is no Nash equilibrium.
C) Both Alistair and Baine increase their advertising budgets.
D) Baine increases its advertising budget, but Alistair does not.
C
You might also like to view...
The amount of payment necessary to attract a given productive resource away from its best alternative use is the
a. resource cost. b. opportunity cost. c. overhead cost. d. variable cost.
Which of the following is true of the simple spending multiplier
a. It equals the ratio of the marginal propensity to consume to the marginal propensity to save. b. It equals the difference between the marginal propensity to save and the marginal propensity to consume. c. It is the reciprocal of the marginal propensity to save d. It is the reciprocal of the marginal propensity to consume. e. It is the sum of the marginal propensity to consume and the marginal propensity to save.
A shock to the economy is a change in
a. production that only affects a few sectors b. production that initially affects the whole economy and then one or more sectors c. spending or production that initially affects one or more sectors and then spreads throughout the whole economy d. spending that only affects a few sectors e. spending that initially affects the whole economy and then one or more sectors
Refer to the above graph. Assume the market for this product is in equilibrium at the intersection of D2 and S1. The shift in supply from S1 to S2 is due to an excise tax imposed on the product. The incidence of the tax is:
a. $1 from the buyers and $3 from the sellers b. $3 from the buyers and $3 from the sellers c. $1 from the buyers and $1 from the sellers d. $4 from the buyers and $0 from the sellers