Which of the following is true of the dominant strategy equilibrium?
A) A dominant strategy equilibrium always leads to the best outcome for each player.
B) A dominant strategy equilibrium cannot be a Nash equilibrium.
C) A dominant strategy equilibrium is a Nash equilibrium if each player chooses a strategy that is a best response to the strategies of others.
D) A dominant strategy equilibrium occurs if the sum of the players' payoff is zero.
C
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Suppose you have put $5,000 into a project that should generate cash inflows of $1,250 for each of the next 5 years. If the interest rate is 8% is this a good investment?
A. Yes, because you will earn a profit of $1,250 dollars in 5 years B. Yes, because the internal rate of return is higher than the interest rate C. No, because the internal rate of return is higher than the interest rate D. No, because the net present value is negative
A financial intermediary less strictly regulated than a bank, and with no government guaranteed deposits is known as a
a. non-bank. b. junior bank. c. secondary bank. d. trade bank. e. intermediary bank.
Assume, for Canada, that the domestic price of steel without international trade is higher than the world price of steel. This suggests that with trade,
a. Canada has a comparative advantage in the production of steel over other countries and Canada will import steel. b. Canada has a comparative advantage in the production of steel over other countries and Canada will export steel. c. other countries have a comparative advantage over Canada in the production of steel and Canada will import steel. d. other countries have a comparative advantage over Canada in the production of steel and Canada will export steel.
Kroger's grocery chain wants to finance the purchase of a new warehouse. It decides to sell bonds
a. Kroger's plans to use equity financing and its action is part of the demand for loanable funds. b. Kroger's plans to use equity financing and its action is part of the supply of loanable funds. c. Kroger's plans to use debt financing and its action is part of the demand for loanable funds. d. Kroger's plans to use debt financing and its action is part of the supply of loanable funds.