The free-rider problem is intrinsic to public goods.
Answer the following statement true (T) or false (F)
True
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A Nash equilibrium ______
A. is the outcome that delivers maximum economic profit B. is the outcome in which each player takes the best action given the other player's action C. changes each time the game is played D. is the best possible outcome for the two players
For some investors, derivatives can be attractive financial assets to purchase because
A. these assets can be used to offset the possibility of another risk faced by the investor. B. these assets allow an investor to eliminate the risk that they face entirely. C. they provide high returns with a very small investment. D. they are easier to sell than common stock.
You own an ice cream store and are concerned that an employee may be giving generous scoops to friends and relatives and smaller scoops to some other customers. This may be reducing sales. In this example, you are the
a. principal and the your employee is the agent. b. agent and the your employee is the principal. c. signaler and the your employee is the screener. d. screener and the owner of the coffee ship is the signaler.
A situation in which one firm's actions with respect to price, quality, advertising and related changes may be strategically countered by the reactions of one or more other firms in the industry is known as
A) strategic dependence. B) economies of scale. C) the concentration ratio. D) barriers to entry.