A situation in which each firm chooses the best strategy given the strategies chosen by other firms is called a
A) Nash equilibrium.
B) dominant strategy.
C) collusion.
D) payoff matrix.
Answer: A
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The New Deal in U.S. history is that period during the Great Depression in which American "capitalism" is redefined and the role of the federal government in the economy fundamentally changes forever
Indicate whether the statement is true or false
On a bar graph comparing a firm's economic profit with its accounting profit, it will always be TRUE that
A) explicit costs will be greater in the column representing accounting profit. B) explicit costs will be greater in the column representing economic profit. C) total revenue will be greater in the column depicting accounting profit. D) opportunity costs will be missing from the column depicting accounting profit.
A firm realizes that the market price has fallen below its average total costs, and it is now earning a loss. What is the best action for the firm to take in the short run?
A. Shut down if price is greater than average variable costs. B. Produce where MC = MR to minimize losses if P < AVC. C. Shut down if total revenue is less than fixed costs. D. Produce where MC = MR to minimize losses if P > AVC.
Seymour owns 3 acres of beautiful waterfront property on a large inland lake. In his will, Seymour donates the land to the state with the understanding that the land will be used as a state beach. Seymour wants an efficient way to prevent overcrowding at the beach, so he should require
a. that all beach visitors pay the same entry fee regardless of the day of the week or time of the year. b. that the beach limit the number of visitors to 500 per day, without an entry fee. c. an entry fee be charged on summer weekend days when many people tend to visit the beach. d. that only local residents be admitted to the beach.