A mixed strategy may
A) be part of a Nash equilibrium.
B) be a set of probabilities of selecting each possible action.
C) lead identical firms to choose different actions.
D) All of the above.
D
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Government attempts to prohibit monopolization of a market are known as
a. antitrust regulation b. economic regulation c. social regulation d. anticompetitive regulation e. Herfindahl regulation
Behavioral economists use findings from psychology to explain complex consumer behavior that cannot always be explained by traditional economic models
a. True b. False Indicate whether the statement is true or false
According to the median-voter theorem, the chosen policy will be the one preferred by the:
A. the average voter, rather than the largest number of voters. B. median voter. C. largest number of voters, rather than the average voter. D. greatest average of voters, rather than the majority of voters.
Assume the tennis ball industry, a perfectly competitive industry, is in long-run equilibrium with a market price of $5. If the demand for tennis balls increases and the industry experiences decreasing returns to scale, long-run equilibrium will be reestablished at a price
A. less than $5. B. equal to $5. C. greater than $5. D. either greater than or less than $5, depending on the number of firms that enter the industry.