Refer to Table 14-3. Which of the following statements is true?
A) The Nash equilibrium is a noncooperative, dominant strategy equilibrium.
B) The Nash equilibrium is a cooperative equilibrium.
C) There is no Nash equilibrium in this game because each party pursues its dominant strategy.
D) The Nash equilibrium is a collusive equilibrium.
A
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All of the following statements are examples of normative economic analysis except
A) as the demand for emergency room nurses increases, more students are choosing to enroll in nursing school. B) to provide better care, doctors should be required to limit the number of patients they see each day. C) people should be able to choose whether they want to purchase health insurance. D) prescription drugs are too expensive and the government needs to regulate prices in the pharmaceutical industry.
The fact that, for most of its history, the Fed was reluctant to make discount loans actually:
A. pushed the discount rate above the target federal funds rate. B. at times was a destabilizing force for financial markets. C. proved to be a very stabilizing force for financial markets. D. resulted in banks in very strong financial shape as being the only ones borrowing from the Fed.
Let the quantity of hamburgers be measured along the vertical axis and the quantity of movies be measured along the horizontal axis. If the price of a hamburger is $1.50 and the price of a movie is $6, then the slope of the budget line is
A) -6. B) -4. C) -3. D) -0.25.
A merger between firms at different stages of production of a good
A) is a vertical merger. B) was made illegal by the Sherman Act. C) was made legal by the Clayton Act. D) is a horizontal merger.