The reason that the prisoner's dilemma presents a dilemma is that:
A. each player has an incentive to play his or her dominated strategy, but when both choose the dominated strategy each player has a lower payoff than if they both had chosen the dominant strategy.
B. the market cannot be in equilibrium because the players do not have dominant strategies.
C. neither player has a comparative advantage, so neither can infer what the other player will choose.
D. each player has an incentive to play his or her dominant strategy, but when both choose the dominant strategy each player has a lower payoff than if they both had chosen the dominated strategy.
Answer: D
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A) less; less B) less; more C) more; less D) more; more
An increase in the price of a product
A) automatically increases wages. B) raises the firm's demand for labor. C) would probably decrease total revenues. D) increases productivity.
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a. the production level is inefficient. b. that if the production of trousers is reduced, that of shirts will also decline. c. that a reallocation of resources may make previously unachievable outcomes achievable. d. the production level is efficient.
Which of the following would cause the demand for computer programmers to increase?
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