In a game with multiple Nash equilibria, all of the following can be used to determine the equilibrium of the game except which one?
A) the Focal point
B) a coin flip
C) the Pareto criterion
D) refinements
B) a coin flip
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Scott is a manager at a pool cleaning business. He has hired 10 workers to clean pools for him and is considering what type of payment scheme he should set up for his workers
He can pay each of his workers $10 per hour to clean pools, or he can pay his workers $20 for each pool a worker cleans. (It takes 2 hours, on average, for an employee to clean a pool thoroughly.) If Scott wants to maximize the number of pools his workers clean in one day, which payment scheme should he use? Explain.
In the kinked demand curve model, the demand curve is ________ for price increases and ________ for price decreases
A) unit elastic; relatively elastic B) relatively inelastic; relatively elastic C) relatively elastic; relatively inelastic D) perfectly elastic; perfectly inelastic
The theory of economic rent can be used to explain high incomes received by movie stars and athletes.
Answer the following statement true (T) or false (F)
A firm's demand for labor is derived in part from
A. the value of the firm's stock price. B. consumer demand for the firm's product. C. worker preferences for jobs. D. the level of monthly union dues. E. the firm's sunk costs.