Refer to the above payoff matrix for the profits (in $ millions) of two firms (X and Y) making a decision to advertise or not. Which of the following is the outcome of the dominant strategy without cooperation?
A. Firm X chooses not to advertise while firm Y chooses to advertise.
B. There is no dominant strategy in this scenario.
C. Both firm X and firm Y choose not to advertise.
D. Firm X chooses to advertise while firm Y chooses not to advertise.
Answer: B
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a. both her indifference curves and budget constraint change. b. her indifference curves change, but her budget constraint does not change. c. her budget constraint changes, but her indifference curves do not change. d. neither her indifference curves nor her budget constraint change.
U.S. GDP excludes the production of most illegal goods
a. True b. False Indicate whether the statement is true or false
If marginal cost is equal to average total cost, then
a. marginal cost is minimized. b. average total cost is minimized. c. average variable cost is minimized. d. marginal cost is zero.
The best example of a transfer payment would be ___.
A. govenment investment B. government purchases C. government giving funds to the unemployed D. the government paying its workers