Sequential games are often used to analyze which two types of business strategies?
A) deciding to end production of an unprofitable product and deciding to shut down temporarily
B) deciding to merge with another firm and deciding how much to spend on an advertising campaign
C) deterring entry by another firm and bargaining between firms
D) whether to invest in research and development and whether to offer employees an early retirement package
Question 2
The idea that individuals should be taxed in proportion to the marginal benefits that they receive from public goods is called
A) the horizontal-equity principle. B) the ability-to-pay principle.
C) the benefits-received principle. D) the vertical-equity principle.