A ________ occurs if all players in a game play their best strategies given what their competitors do.
A. prisoners' dilemma
B. dominant strategy
C. Nash equilibrium
D. tit-for-tat strategy
Answer: C
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George Washington’s troops at Valley Forge were almost destroyed by price controls.
Answer the following statement true (T) or false (F)
Suppose we were analyzing the pound per Swiss franc foreign exchange market. If Switzerland's price level rise relative to England and nothing else changes, then the: a. The supply of Swiss francs in the foreign exchange market falls, and the demand for Swiss francs in the foreign exchange market falls, causing an uncertain change in the value of the Swiss franc
b. The supply of Swiss francs in the foreign exchange market rises, and the demand for Swiss francs in the foreign exchange market falls, causing an appreciation of the Swiss franc. c. The supply of Swiss francs in the foreign exchange market rises, and the demand for Swiss francs in the foreign exchange market rises, causing an uncertain change in the value of the Swiss franc. d. The supply of Swiss francs in the foreign exchange market rises, and the demand for Swiss francs in the foreign exchange market falls, causing a depreciation of the Swiss franc. e. The supply of Swiss francs in the foreign exchange market falls, and the demand for Swiss francs in the foreign exchange market rises, causing an appreciation of the Swiss franc.
Explain how monopsony might affect the market for labor.
What will be an ideal response?
The figure below shows a situation where the producers of Good X are forming an international cartel. Here, MR = Marginal Revenue, and MC = Marginal Cost. The cartel will set a monopoly price for its output.
How much well-being would the world lose as a result of the formation of the cartel?
A. $15.0 billion B. $12.5 billion C. $50.0 billion D. $5.0 billion