Cooperation:
B. is sustained by the promise of punishment for good behavior.
C. can be established even if threats/promises are not credible.
D. All of these are true about cooperation.
A. is sustained by the threat of punishment for bad behavior.
You might also like to view...
Bookkeeping
Which of the following statements about setting optimal two-part tariffs for many consumers is NOT true?
A) The number of buyers (entrants) declines as the entrance fee (tariff) increases. B) The profit from the entrance fee (tariff) is a concave function of the tariff because it first increases and then decreases as the tariff increases. C) The profit from the entrance fee (tariff) is a convex function of the tariff because if first declines and then increases as the tariff increases. D) The total profits is composed of the profit from the entrance fee (tariff) and from the profit from sales to buyers.
Both the standard of living and the growth of real GDP per person vary widely across countries
a. True b. False Indicate whether the statement is true or false
An automobile manufacturer unexpectedly announces that it has hired a new chief executive officer. It is widely believed that the presence of this individual will raise the profitability of the corporation. At the same time interest rates unexpectedly rise. Which of the above would tend to make the price of the stock rise?
a. the announcement and the rise in interest rates b. the announcement but not the rise in interest rates c. the rise in interest rates, but not the announcement d. neither the announcement nor the rise in interest rates