Economic efficiency in a free market occurs when
A) producer surplus is maximized.
B) price is as low as possible.
C) consumer surplus is maximized.
D) the sum of consumer surplus and producer surplus is maximized.
Question 2
Refer to Table 14-5. Does Henri have a dominant strategy? If yes, what is it?
A) Yes, Henri's dominant strategy is to not offer free pickup and delivery.
B) Yes, Henri's dominant strategy is to offer free pickup and delivery.
C) Yes, Henri's dominant strategy is to wait and see what Ming does first.
D) No, Henri does not have a dominant strategy - his best outcome depends on what Ming does.
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