Which of the following statements is true?
A) In any game, the best response of a player is also her dominant strategy.
B) The best response of a player is not always her dominant strategy.
C) A prisoners' dilemma game is an example of a zero-sum game.
D) A prisoners' dilemma game is an example of an extensive-form game.
B
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In the classical theory of aggregate demand, a decrease in the velocity of money leads to
a. a downward shift in the aggregate demand curve, a fall in prices, and no change in output. b. an increase in the aggregate demand curve, a rise in prices, and no change in output. c. no change in aggregate demand or supply because higher velocity increases the money supply. d. an upward shift in the aggregate demand curve, a fall in prices, and no change in output.
If the percentage change in quantity demanded divided by the percentage change in price equals 1, then
a. supply is inelastic b. supply is elastic c. demand is elastic d. demand is inelastic e. demand is unit elastic
Suppose the development of new drought-resistant hybrid seed corn leads to a 50-percent increase in the average yield per acre without increasing the cost to the farmers who use the new technology. If the conditions in the corn production industry are approximated by the price-taker model, which of the following is most likely to occur?
a. The price of corn will increase. b. The price of soybeans (a substitute for corn) will increase. c. The profits of corn farmers who quickly adopt the new technology will increase. d. The profits of corn farmers who do not adopt the new technology will increase.
When the price is P1, in order to maximize profits this firm must produce a quantity equal to 
A. q2. B. q1. C. q3. D. Q1.