Commitment strategies:
A. are not necessary to reach a mutually beneficial equilibrium in repeated games.
B. usually fail to work.
C. are always needed to reach a mutually beneficial equilibrium in single-round games.
D. are not observed in reality.
Answer: A
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The study of the decision-making process of government is the study of:
a. Keynesian economics. b. public choice theory. c. rational expectations theory. d. social economics.
Which of the following is true? a. Price leadership is a form of explicit collusion
b. Price leadership is more likely when there are a substantial number of roughly equally sized firms in oligopoly. c. A price leader is most likely to be a dominant firm in an industry. d. None of the above is true.
Hotelling's rule states that
a. The net price of a resource is constant b. The net price of a resource rises at a rate equal to the interest rate c. The net price of a resource declines at a rate equal to the interest rate d. The price of a resource depends on the allocation of property rights e. The price of a resource is efficient as long as all user costs are internalized
Which of the following pricing strategies does NOT usually enhance the profits of firms with market power?
A. Commodity bundling B. Price discrimination C. Marginal cost pricing D. Block pricing