This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If each player has a dominant strategy, then those strategies make up the Nash equilibrium. What ... (Read 124 times)

leilurhhh

  • Hero Member
  • *****
  • Posts: 560
on: Jul 1, 2018
If each player has a dominant strategy, then those strategies make up the Nash equilibrium.
 
  What will be an ideal response?

Question 2

A firm experiences increasing returns to scale; that is, doubling all its inputs more than doubles its output. What can be inferred about the firm's short-run costs?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

vseab

  • Sr. Member
  • ****
  • Posts: 323
Reply #1 on: Jul 1, 2018
Answer to Question 1

True. A Nash equilibrium is where each player is selecting their best response to the other player's strategy. Because a dominant strategy is a best response to any strategy of the other player, it must also be a best response to the specific strategy of the other player.

Answer to Question 2

Returns to scale is a long-run phenomenon because all inputs must be changed. Thus we can infer little about the firm's short-run costs from this information, other than the firm is likely to experience diminishing marginal returns in the short run due to the fact that it will have a fixed factor of production (and thus short-run marginal costs will rise with output).


leilurhhh

  • Member
  • Posts: 560
Reply 2 on: Jul 1, 2018
Gracias!

bigsis44

  • Member
  • Posts: 317
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Human kidneys will clean about 1 million gallons of blood in an average lifetime.

Did you know?

Drying your hands with a paper towel will reduce the bacterial count on your hands by 45–60%.

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

Did you know?

In 1885, the Lloyd Manufacturing Company of Albany, New York, promoted and sold "Cocaine Toothache Drops" at 15 cents per bottle! In 1914, the Harrison Narcotic Act brought the sale and distribution of this drug under federal control.

Did you know?

Vaccines prevent between 2.5 and 4 million deaths every year.

Primatologist Volker Sommer and his colleagues showed that langur infanticide had adaptive value and Primatologist Volker Sommer and his colleagues showed that langur infanticide had adaptive value and
Player - Baby Come Back Player - Baby Come Back
Othmer’s Equilibrium Still Schematic Diagram Othmer’s Equilibrium Still Schematic Diagram
The Distribution of Dominant and Minority Groups The Distribution of Dominant and Minority Groups
The location of the variable fuel sensor can vary, depending on the make and model of vehicle, but ... The location of the variable fuel sensor can vary, depending on the make and model of vehicle, but ...
Biomass can be processed to make vehicle fuels Biomass can be processed to make vehicle fuels
Video: Cataract

For a complete list of videos, visit our video library