If neither firm has a dominant strategy, a Nash equilibrium cannot exist
Indicate whether the statement is true or false
False. Even if a firm has no strategy that dominates all others, it may still have a strategy that is the best given what the other firm is doing. When this is true for both firms for the same strategy pair, a Nash equilibrium exists.
You might also like to view...
If changes in economic policy could cause the growth rate of real GDP to increase by 1% per year for 100 years, then GDP would be ________ % higher after 100 years than it would have been otherwise
A) 1.3 B) 2.0 C) 2.7 D) 3.8
The four-firm concentration ratio
A) indicates the total profitability among the top four firms in an industry. B) is an indicator of the degree of monopolistic competition. C) indicates the presence and intensity of an oligopoly market. D) is used by the government as a basis for anti-trust cases.
The marginal revenue product is the extra revenue the firm receives by selling one more unit of output
a. True b. False Indicate whether the statement is true or false
Which of the following statements is not correct?
a. Some firms pay wages that are above the equilibrium wage. b. Workers sometimes form labor unions to push their wages up. c. Wages never deviate from the balance of supply and demand in the market for labor. d. The federal government mandates that employers pay their workers at least as much as the minimum wage.