The Stackelberg model is more appropriate than the Cournot model in situations where
A) there are more than two firms.
B) all firms enter the market simultaneously.
C) one firm makes its output decision before the other.
D) firms will be likely to collude.
C
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Which of the following statements is correct?
A) An increase in productivity moves the economy from inside the production possibilities frontier to the frontier itself. B) A reduction in unemployment shifts the entire production possibilities frontier outward. C) An increase in unemployment shifts the economy from a point outside the production possibilities frontier back to the production possibilities frontier. D) An increase in productivity shifts the economy from producing at a point on the production possibilities frontier to a point outside the production possibilities frontier. E) An increase in unemployment shifts the economy further inside its production possibilities frontier.
Which of the following statements is false?
A. Government can remove individuals from a prisoner's dilemma setting and make them better off. B. In a prisoner's dilemma setting, it is impossible for the government to define and enforce property rights that the individuals involved in the setting want to have defined and enforced. C. As long as government charges each individual in a prisoner's dilemma setting a tax that is less than the gain received by being removed from the setting, then government has made the individuals better off. D. Depending upon the amount of the tax charged to each individual in a prisoner's dilemma setting, the government can make both persons better off, both persons worse off, or one person better off and the other person worse off.
In game theory, a Nash equilibrium is defined as:
A) the dominant strategy of each player. B) a set of strategies for which all players are choosing their best strategy, given the actions of the other players. C) the set of strategies that result in the maximum payoff to each player. D) the set of strategies chosen when the players in a game can cooperate with each other.
True, false, or uncertain? Any firm that is not covering fixed costs should shut down in the short run
Indicate whether the statement is true or false