If a firm does NOT know its rival's profit function, then we consider that information to be
A) irrelevant in deciding its best strategy.
B) private.
C) common knowledge.
D) Pareto sub-optimal.
B
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The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A decrease in the price of sugar used to make soft drinks is shown as a movement from point a to a point such as
A) none of the points that are illustrated. B) point b. C) point c. D) point d.
Which elasticity measures producers' responsiveness to a change in price?
A. Price elasticity of demand B. Cross-price elasticity C. Price elasticity of supply D. Income elasticity of supply
A tax on the wages paid to an employee is called the:
A. payroll tax. B. personal income tax. C. corporate income tax. D. excise tax.
Game theory is important for the understanding of
a. competitive markets. b. monopolies. c. oligopolies. d. all market structures.