In a two-player simultaneous game, if player A has a dominant strategy and player B does not, player B will
A) employ a mixed strategy
B) choose his best strategy assuming that player A plays her dominant strategy
C) not achieve a Nash equilibrium
D) assume that player A does not choose her dominant strategy
B) choose his best strategy assuming that player A plays her dominant strategy
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Firms in perfectly competitive industries have a ________ individual demand curve when the price is on the vertical axis and the quantity is on the horizontal axis. The shape of the curve is result of the firm being a ________
A) horizontal; price taker B) downward sloping; price maker C) vertical; price taker D) downward sloping; price taker
The above figure shows the payoff matrix for two firms, A and B, selecting an advertising budget. The firms must choose between a high advertising budget and a low advertising budget. Firm B's dominant strategy
A) does not exist. B) is to copy firm A. C) is to select a high advertising budget. D) is to select a low advertising budget.
The short-run aggregate supply curve: a. is positively sloped
b. is negatively sloped. c. is a vertical line parallel to the price level axis. d. is a horizontal line parallel to the output axis. e. is a ray from the origin with slope exactly equal to 1.
The return to schooling for society is higher than the return to schooling for the individual if
a. the concept of diminishing returns applies to education. b. the concept of constant returns to scale applies to education. c. human capital conveys positive externalities. d. investment in human capital involves no opportunity costs.