If neither firm has a dominant strategy, a Nash equilibrium cannot exist
Indicate whether the statement is true or false
False. Even if a firm has no strategy that dominates all others, it may still have a strategy that is the best given what the other firm is doing. When this is true for both firms for the same strategy pair, a Nash equilibrium exists.
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An example of in-kind income is: a. a welfare payment
b. a cash grant. c. a housing subsidy. d. an unemployment check.
A monopolistically competitive industry is characterized by
a. many firms, differentiated products, and barriers to entry. b. many firms, differentiated products, and free entry. c. a few firms, identical products, and free entry. d. a few firms, differentiated products, and barriers to entry.
Collective decision making
What will be an ideal response?
Which of the following activities are production?
A. moving crude oil from one part of Texas to an oil refinery near the Texas coast B. combining flour, milk, and eggs to make cookies C. taking ice cubes from a tray to put in a drink D. All of these are production.