A Nash equilibrium is:
A. an outcome in which all players choose the best strategy they can, given the choices made by all of the other players.
B. when one strategy is always the best for a player to choose, regardless of what other players do.
C. an outcome in which all players follow a "leader" in order to maximize profits.
D. None of these statements is true.
A. an outcome in which all players choose the best strategy they can, given the choices made by all of the other players.
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Persistent wage differentials in the U.S. can best be explained by
a. increased immigration of both skilled and unskilled workers b. increased labor-force mobility among the states c. the existence of noncompeting labor markets d. the existence of backward-bending labor supply curves e. the increasing competitiveness of firms in labor markets
A coffee manufacturer uses both capital and labor resources for production. All other things constant, an increase in the price of capital will: a. shift the supply of labor curve leftward
b. shift the demand for capital curve rightward. c. shift the demand for labor curve leftward. d. shift the demand for labor curve rightward.
Suppose a firm has a weekly cost function of C(Q) = 8Q + (Q2/100) and a marginal cost function of MC = 8 + (Q/50). What is the efficient scale of production, and what is the minimum average cost?
A. Qe = 0; AC = $0 B. Qe = 0; AC = $8 C. Qe = 8; AC = $8 D. Qe = 8; AC = $64.64
The demand for money curve shows
A) the quantity of money demanded at each interest rate, holding all other determinants unchanged. B) the quantity of money made available by the Federal Reserves, holding all other determinants unchanged. C) the quantity of money demanded at each bond price, holding all other determinants unchanged. D) the quantity of money demanded at price level, holding all other determinants unchanged.