By committing to reduce one's options during a sequential game, a player can force a change in his opponents' strategy, and that commitment strategy results in a:
A. payoff that he likely would have gotten anyway.
B. cooperative equilibrium.
C. payoff that would otherwise be out of reach.
D. negative-negative outcome.
C. payoff that would otherwise be out of reach.
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Differentiate between the adaptive expectations and the rational expectations models of inflation
What will be an ideal response?
In the above figure, curve D slopes downward because
A) average fixed costs decrease as output increases. B) all costs decrease as output increases. C) there are diminishing returns. D) there are decreasing marginal costs.
Which of the following is a characteristic of a contestable market?
a. long-run economic profit b. many firms that are small relative to the market c. high costs for entry and exit d. minimum-cost production methods
What is a positive effect of advertising?
A. It promotes economic concentration in industry. B. It reduces economic efficiency in the economy. C. It provides information that reduces search costs. D. It is designed to persuade rather than inform consumers.