Refer to the scenario above. Which of the following is likely to be true if the game is played only once?
A) The equilibrium outcome will be a Nash.
B) The equilibrium outcome will be socially inefficient.
C) No unique equilibrium will occur.
D) Multiple Nash equilibria will occur.
B
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The belief that the regulators of the U.S. financial system would not tolerate any losses by depositors at large depository institutions is called
A) the too-big-to-fail doctrine. B) the regulatory capture hypothesis. C) the lender of last-resort doctrine. D) corporate banking system welfare.
Under a proportional tax, the fraction of income paid in taxes
a. rises as income rises. b. is unchanged as income changes. c. falls as income rises. d. is proportional to the change in income.
If a price ceiling is set at $10, and the equilibrium market price is $8, then which of the prices below is the price that consumers actually pay?
a. $2 b. $18 c. $10 d. $8
Which of the following is generally a fixed cost?
A. Utilities. B. Profit taxes. C. Property taxes on land used in production. D. Wages.