The difference between a Nash equilibrium and a subgame-perfect equilibrium is:
a. the former requires rational play both on and off the equilibrium path but the latter requires rational play only on the equilibrium path.
b. the former requires rational play only on the equilibrium path but the latter requires rational play both on and off the equilibrium path.
c. Nash equilibria are a subset of the subgame-perfect equilibria.
d. nothing; they are synonyms.
b
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As the price of cookies increases, firms that produce cookies will:
A. increase the supply of cookies. B. decrease the supply of cookies. C. increase the quantity of cookies supplied. D. decrease the quantity of cookies supplied.
Susan likes to drink sodas. The ________ soda Susan drinks, the ________ of the last soda
A) more; higher the marginal benefit B) less; higher the opportunity cost C) less; lower the marginal benefit D) more; lower the marginal benefit
The figure below shows the retail demand for running shoes. If the distributor (the retailer) is a monopoly and the marginal cost of distributing the shoes is $20 per pair, the manufacturer's wholesale demand curve lies
A) $20 below the retail demand curve, D.
B) $20 below the retail marginal revenue curve, MR.
C) $20 above the retail demand curve, D.
D) $20 above the retail marginal revenue curve, MR.
All of society's applied knowledge on how to produce goods and services is
A) held by university professors. B) called technology. C) opportunity cost. D) efficiency.