The reason we study the sequential labor negotiation game:
a. Is to show that these games usually go on for rounds and rounds
b. Is to show the importance of the first mover being able to commit to an offer
c. Is to show the importance of the second mover being able to commit to an offer
d. Is to show the problems of prisoners dilemmas
Question 2
A linear total cost curve which passes through the origin implies that:
a. average cost is constant and marginal cost is variable.
b. average cost is variable and marginal cost is constant.
c. average and marginal costs are constant and equal.
d. need more information to answer question.
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