The prisoner's dilemma demonstrates that
a. breaking out of prison may be too costly for most prisoners
b. the opportunity cost of being a prisoner is indeterminate
c. the dominant strategies followed by two prisoners may lead to disequilibrium that is unpredictable
d. the weak strategy may be followed by both prisoners if the opportunity cost is low
e. the dominant strategies followed by two players may lead to an equilibrium that is less not optimal for both players together
E
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Which of the following statements is true?
A) Technological innovation can cause unemployment in a country as a whole. B) Technological innovation always complements labor. C) Technological innovation can cause unemployment in a single industry. D) Technological innovation always substitutes labor.
Ronny's Pizza House is a profit maximizing firm in a perfectly competitive local restaurant market, and their optimal output is 80 pizzas per day. The local government imposes a new tax of $250 per year on all restaurants that operate in the city
How does this affect Ronny's profit maximizing decisions? A) No impact on the restaurant's decisions B) Ronny's will remain in business but will definitely produce less pizza C) Ronny's will definitely shut down D) Ronny's decision depends on the circumstances -- if their profits are larger than $250 per year, then the tax does not impact output; otherwise, Ronny's Pizza House will shut down.
While on a study abroad program you see a McDonald's in Paris. A combo meal costs 8 euros. The same meal costs $6 in the U.S. and the exchange rate is .75 euros per dollar. A. Find the real exchange rate. Show your work. B. In terms of dollars where is the combo meal cheaper?
When a brand name drug’s patent protection expires, many generic producers are usually ready to enter the market. These firms’ products are close substitutes, they have similar production technologies, the regulatory hurdles to enter are not so great, and, within a few months, there are plenty of rivals. What would you predict for the profitability during these first few months after generic drug entry?
What will be an ideal response