Refer to the payoff matrix. Bob's Burgers and Sam's Sandwiches are competing restaurants in a small town. Both are considering adding pizza to their line of products. If this is a sequential game but we don't know who moves first, what can we say about the final outcome?
A. There is no Nash equilibrium attainable for this game.
B. Cell A represents the only Nash equilibrium possible for this game.
C. Cell D represents the only Nash equilibrium possible for this game.
D. Cells B and C both represent possible Nash equilibrium outcomes for this game.
D. Cells B and C both represent possible Nash equilibrium outcomes for this game.
You might also like to view...
Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. B; C C. B; A D. D; B
The investment by firms in the creation of products not yet available on the market is referred to as:
A) working capital. B) creative capital. C) innovation funds. D) research and development.
In a society, if negotiation among parties leads to a politically unsatisfactory distribution of income:
a. the legislature can enact laws to redistribute this income. b. the society can on its own reallocate resources to bring about a politically satisfactory outcome. c. the parties will renegotiate until they reach a politically satisfactory outcome. d. the parties will refuse to carry out future transactions.
Joan uses some of her income to buy mutual fund shares. A macroeconomist refers to Joan's purchase as investment
a. True b. False Indicate whether the statement is true or false