This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.The game in the figure shown is a version of:
A. a repeated game.
B. a sequential game.
C. the prisoner's dilemma.
D. the first-mover advantage.
Answer: C
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A mixed enterprise is one
A) where the government has significant ownership in a private company. B) in which the company has more than one legal structure, such as limited liability and sole proprietorship. C) that combines for-profit activities with education. D) that has both for-profit and non-profit operations.
The marginal revenue curve for a monopolist is
A. always above the demand curve. B. generally below the average cost curve. C. always above the average revenue curve. D. always below the demand curve.
What type of cost is not relevant to the process of research and development or invention in general?
a. fixed cost b. marginal cost c. variable cost d. social cost
We assume that in the long run in a perfectly competitive market:
A. the firms can enter or exit. B. collusion will set in without government regulation. C. the price will be constant. D. the number of firms is fixed.