What does the term "commitment" refer to in game theory?
What will be an ideal response?
The term "commitment" refers to the ability to choose and stick with an action that might later be costly.
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The rules of the National Collegiate Athletic Association (NCAA) limit the amount of money colleges can offer to athletes to
A) assure balanced competition on collegiate athletic fields. B) maintain high ethical standards in college sports. C) preserve the spirit of amateurism in an age of professionalism. D) prevent competition for star athletes from raising the price of enrolling them. E) prevent the schools with the most profitable athletic programs from attracting more than their share of the best athletes.
A merger between a firm manufacturing radios and a firm manufacturing paper products is a
A) conglomerate merger. B) diagonal merger. C) horizontal merger. D) vertical merger.
If a firm in a perfectly competitive market faces the cost curves in the graph shown, which of the following is true? The firm:
A. if it produces at profit-maximizing level of output it will make positive profits when price is higher than $15.
B. if it produces at profit-maximizing level of output it will make positive profits when price is higher than $11.
C. should always produce at least 43 units in order to maximize profits.
D. will shut down if market price is below $15, but above $11.
Libertarians believe that in considering economic fairness, one should primarily consider the
a. outcome of the system. b. process by which outcomes arise. c. maximin criterion. d. maximization total social utility.