A Nash equilibrium is a condition that:
A. describes a set of circumstances in which no player can improve her payoff by unilaterally changing her own strategy, given the other players' strategies.
B. results in the highest payoff to a player regardless of the opponent's action.
C. randomizes over two or more available actions in order to keep rivals from being able to predict a player's action.
D. guarantees the highest payoff given the worst possible scenario.
Answer: A
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The amount of frictional unemployment depends on
A) the phase of the business cycle. B) the time of the year. C) international competition. D) demographic factors and unemployment benefits. E) Both answers A and B are correct.
The figure above shows the cost, marginal revenue, and demand curves of Golden Chow, a producer of dog food. The market for dog food is monopolistic competition. In the long run as new firms enter, Golden Chow cuts its output to 200 cans per day
Its excess capacity is ________ cans per day. A) 0 B) between 0 and 200 C) between 201 and 400 D) more than 401
Macroeconomic equilibrium requires
A) equilibrium in the goods market. B) equilibrium in the money market. C) equilibrium in both the goods and money markets. D) equilibrium in neither the goods nor the money market.
Contracts are enforced by
a. the firms that make the contracts through buy-out clauses b. law firms that specialize in contract enforcement c. corporations specializing in contract writing and enforcement d. the government through the judicial system e. both households and firms through customer relations departments