Answer the following statement(s) true (T) or false (F)
1. When both players have dominant strategies, there is only one Nash equilibrium.
2. The Battle of the Sexes game has two Nash equilibria, neither of which is Pareto optimal.
3. All outcomes in the Copycat Game are Nash equilibria.
4. A solution concept is any way of analyzing a game which leads to the discovery of a Nash equilibrium which solves the game.
5. The concept of Nash Equilibrium is an important solution concept because it helps make predictions.
1. True
2. True
3. False
4. False
5. True
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Greg, a landscaper, is planning on opening his own landscaping company. He currently earns $40,000 per year working for his uncle but he will need to quit that job
He plans to use $10,000 in savings to pay for the equipment he needs, though even after use he could sell the equipment for what he paid, $10,000. The current interest rate on savings is 5 percent. What is the total opportunity cost incurred by Greg in running his own business? A) $10,000 B) $40,500 C) $40,000 D) $50,000
What are the factors that can shift the short-run aggregate supply curve but not the long-run aggregate supply curve? Explain your answer
What will be an ideal response?
Each nation's International Monetary Fund (IMF) quota subscription is based on
A) its national income. B) its share in world trade. C) its public debt. D) its trade surplus.
Which of the following were invented centuries ago in China?
a. gunpowder b. the wheelbarrow c. printing with movable type d. all of the above