In a beauty contest game such as predicting the average of ...

[rosent76]

In a beauty contest game such as predicting the average of respondents choosing a number between 0 and 100
 
  A) the outcome is not normally the Nash equilibrium for the game.
  B) the winner usually exhibits level-3 reasoning.
  C) the winner must understand the non-rationality of the players.
  D) All of the above.

Question 2

A flour mill holding exclusive contracts to 95 of the wheat in a large geographic area may operate as a flour-producing monopoly locally because
 
  A) the mill has a very inelastic supply curve.
  B) the mill is a natural monopoly.
  C) the mill controls a key input.
  D) the government will declare it a monopoly.

[Heffejeff]

Answer to Question 1

D

Answer to Question 2

C

[rosent76]

TYSM

[amit]

Excellent