Refer to the following payoff matrix:Player 1Player 2??Low QHigh Q?Low Q$50,$5$15,$30?High Q$40,$2$2,$1If the payoff matrix is a simultaneous-move production game, the Nash equilibrium is for:
A. player 1 to produce low output and player 2 to produce high output.
B. both players to produce high output.
C. player 1 to produce high output and player 2 to produce low output.
D. both players to produce low output.
Answer: A
You might also like to view...
Which of the following goods will have the most elastic demand at any time?
A. Cigarettes B. Electricity C. Gasoline D. Water E. Jewelry
According to real business cycle theorists, changes in Real GDP are the result of initial changes in
A) aggregate demand. B) the money supply. C) the expected inflation rate. D) prices. E) none of the above
The combination of inflation and real growth shown by the AD curve give:
A. the same level of inflation. B. the same level of money supply growth. C. the same level of real GDP growth. D. the same level of nominal GDP growth.
What does the area labeled C show?
a. increase in revenue due to change in quantity
b. decrease in revenue due to change in quantity
c. increase in revenue due to change in price
d. decrease in revenue due to change in price