Suppose Firm A and Firm B are considering whether to invest in a new production technology. For each firm, the payoff to investing (given in thousands of dollars per day) depends upon whether the other firm invests, as shown in the payoff matrix below.
Is this game a prisoner's dilemma?
A. No.
B. Yes.
C. It cannot be determined.
D. Only when both Firm A and Firm B invest.
Answer: A
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The Patient Protection and Affordable Care Act (ACA) is scheduled to be fully implemented by 2019, at which point
A) more than 30 million additional individuals are expected to have health care coverage. B) all hospitals in the United States will be taken over by the federal government. C) private health insurance companies will no longer exist in the United States. D) current budget cuts are expected to have completely offset the cost of the program.
The United States chooses to have ________ and ________ and therefore, cannot have a fixed exchange rate at the same time
A) capital control; an independent monetary policy B) free capital mobility; an independent monetary policy C) free capital mobility; no control of monetary policy D) capital control; no control of monetary policy
A decrease in transfer payments works like a tax hike because it reduces the level of disposable income.
Answer the following statement true (T) or false (F)
Identify the correct sequence of economic integration starting from the least integrated to the most integrated.
a.free trade area, customs union, economic union, political union, and common market b. free trade area, customs union, common market, economic union, and political union c. common market, free trade area, customs union, economic union, and political union d. free trade area, common market, customs union, economic union, and political union e. common market, free trade area, customs union, political union, and economic union