Suppose that two poker players believe that they are superior players to the rest of the people at their table. Further suppose that the two players make an agreement to concede hands to each other in order to drive the other players from the game first. Economists would model such behavior as
a. monopolistic competition.
b. game theory.
c. predatory pricing.
d. a dominant strategy.
b
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If Y = $100 billion, then C = $50 billion, and I = $60 billion. What will autonomous investment be when Y = $200 billion and C = $100 billion?
a. $50 billion b. $60 billion c. $100 billion d. $120 billion e. $200 billion
The rate of return on an investment in medical education:
a. will increase with an increase in the availability of student loans. b. is inversely related to the number of years in the profession. c. is much higher than the rate of return on an undergraduate business degree. d. is inversely related to the length of time spent in formal schooling. e. is inversely related to income.
Kathy has eaten five cookies. The fifth cookie makes Kathy sick. This means that for Kathy
A) the fifth cookie has little utility. B) the fifth cookie has negative utility. C) the opportunity cost of cookies is high. D) cookies must be inexpensive.
The fed's ability to influence consumption and investment spending through its control of the real interest rate is strongest in the _____ run
Fill in the blank(s) with the appropriate word.