In a mixed strategy equilibrium:
A. a player is indifferent between playing a dominated strategy and playing a non-dominated one.
B. players choose mixed strategies, but the mixed strategy chosen by each is not necessarily a best response to the mixed strategies chosen by the others.
C. players choose mixed strategies and the mixed strategy chosen by each is a best response to the mixed strategies chosen by the others.
D. a player is indifferent between playing a dominated strategy and playing a non-dominated one; and players choose mixed strategies and the mixed strategy chosen by each is a best response to the mixed strategies chosen by the others.
C. players choose mixed strategies and the mixed strategy chosen by each is a best response to the mixed strategies chosen by the others.
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If the cost per unit of output for a particular product is $10 and the product sells for $20, what is the percentage markup over cost per unit?
a. 200 percent b. 10 percent c. 100 percent d. 20 percent e. 50 percent
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.
If a perfectly competitive industry is taken over by a monopolist,
a. output will always rise b. output will always fall c. market price will probably not change d. marginal cost will approach average variable cost in the long run e. market price could fall if there are large gains from technological changes under monopoly
The theory of liquidity preference was developed by Irving Fisher
Indicate whether the statement is true or false
a. True
b. False