The assumption that given the strategy chosen by the other participant, a player will always choose the strategy that brings him or her the best payoff is called
A) strategic interaction.
B) economic self interest.
C) the rationality assumption.
D) the profit-maximizing assumption.
C
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Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
Use the equation Qd = 5,000 - 15P + 50A + 3Px - 4I, (2,117 ) (2.7 ) (15 ) (2 ) (3 )
where Qd = Quantity Demanded, P = Good Price, A = Advertising Expenditures, Px = Price of a Competitive Good, A = Advertising Expenditures, I = Average Monthly Income, and the Standard Errors of the Regression Coefficients are shown in Parentheses. Calculate the t-statistics for each variable and explain what inferences can be drawn from them. If R2 of this equation is 0.25, what inference can be drawn from it?
As population of a region increases, the consumer's demand curve for a product will shift
Indicate whether the statement is true or false
The essential feature of the market mechanism is:
A.) That every consumer is concerned about the welfare of others. B.) The price signal for both consumers and producers. C.) Equity in the distribution of income and housing. D.) Government taxation of profits.