If a player has a dominant strategy in a simultaneous-move game, then she is sure to get her best outcome
Indicate whether the statement is true or false
False. Suppose player 1 has a dominant strategy in a two-player simultaneous move game. Then player two will choose the best response to that dominant strategy. This may not result in the highest payoff for player 1. The prisoners' dilemma is an example. All we can say for sure is that player 1 will achieve the highest payoff given the strategy of the opponent.
You might also like to view...
Raiman's Shoe Repair produces custom-made shoes. When Mr. Raiman produces 12 pairs per week, the marginal cost of the 12th pair is $84, and the marginal revenue of the 12th pair is $70 . What would you advise Mr. Raiman to do?
a. shut down the business b. produce more custom-made shoes c. decrease the price d. produce fewer custom-made shoes
Suppose maple syrup is illegal in the country of Pancake. If there are two ways to smuggle maple syrup into Pancake: one through overland and one by sea. If the proud Pancakian coast guard is able to arrest all who attempt to smuggle syrup by sea, what would the theory of rent predict?
A. The production costs of smuggling syrup by sea will fall to zero as the use of the sea route falls to zero. B. The increased rents to maple syrup will reduce demand for maple syrup. C. Rents for using the land route will increase, making syrup smugglers on net better off. D. Rents for using the land route will increase, but syrup smugglers on net will likely not be better off.
Keynes thought that the major economic reason for the Great Depression was
A. the existence of labor unions. B. a lack of investment due to poor profit expectations. C. the existence of monopolies. D. high interest rates.
Which of the following explains why RGDP demanded increases when the price level falls?
a. the subsequent increase in exports due to increased production b. the corresponding increases in interest rates, which promotes more saving c. the subsequent decrease in imports due to increased purchasing power d. the corresponding increase in the real value of households’ money holdings