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

Economics

You might also like to view...

Refer to the information provided in Figure 2.5 below to answer the question(s) that follow. Figure 2.5Refer to Figure 2.5. The best point for society would be

A. either Point B or Point C, as the total amount being produced at either of these points is approximately the same. B. at any of the labeled points, as all of the points represent an efficient allocation of resources. C. Point C, as at this point there are approximately equal amounts of LCD and OLED televisions being produced. D. indeterminate from this information, as we don't have any information about the society's desires.

Economics

Vaccinating your children is an example of

A. a positive externality. B. logrolling. C. a negative externality. D. a public good.

Economics

What is allocative efficiency and how does it relate to the production possibilities frontier?

What will be an ideal response?

Economics

With a change in the money supply, a vertical LM curve shifts a horizontal distance equal to

A) that change. B) that change times velocity. C) that change divided by velocity. D) that change times the simple Keynesian multiplier.

Economics