In game theory, the credibility of a threat:
A. determines whether or not a Nash equilibrium to a game exists.
B. influences the degree of cooperation between two rivals.
C. is relevant only in simultaneous games.
D. determines whether or not a firm has a dominant strategy.
Answer: B
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A firm will practice price discrimination when it believes that by doing so it will be able to increase total
A) sales. B) revenue. C) profits. D) production.
A breakthrough in technology is most likely to: a. reduce the labor needed to produce a given amount of output. b. decrease the demand for all goods and services in a country. c. increase the cost of production for a firm
d. reduce the availability of skilled workers. e. lower the standard of living in a country in the long run.
The end of the Cold War is generally marked by the fall of the Berlin Wall in
A) 1961. B) 1969. C) 1979. D) 1989. E) 1994.
What does a budget constraint represent? How do budget constraints explain the trade-offs that consumers face?
What will be an ideal response?