A key to gaining cooperative behavior in a repeated game is:
A. that the game must be repeated indefinitely.
B. there must be a definitive end to the game.
C. the players must commit to always acting in their own self-interest.
D. at least one player must have a dominant strategy.
A. that the game must be repeated indefinitely.
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Which of the following statements is false?
A. A positive externality is internalized if the person that generated the externality incorporates into his or her own private cost-benefit calculations the external benefits that third parties receive. B. Internalizing externalities is not the same as adjusting for externalities. C. An externality has been completely internalized if the socially optimal output emerges. D. Assigning property rights is one way to internalize externalities.
Factory workers who work the day shift earn less per hour than similarly-skilled factory workers who work the night shift. The difference in pay is attributed to
a. the marginal product of labor. b. the marginal product of capital. c. diminishing marginal returns. d. a compensating differential.
Entry of new firms will occur in a monopolistic competitive industry until:
a. marginal revenue equals marginal cost. b. economic profit is negative. c. marginal revenue equals zero. d. economic profit equals zero. e. marginal cost equals zero.
Banks use ______ to make loans to borrowers.
a. primary reserves b. secondary reserves c. excess reserves d. reserve requirements