Why does a prisoner's dilemma lead to a noncooperative equilibrium?
A) because players must choose from a limited number of non-dominant strategies
B) because each player is uncertain how other players will play the game
C) because each player had agreed before the game started to minimize the harm that he can inflict on the other players
D) because each rational player has a dominant strategy to play a certain way regardless of what other players do
Question 2
Refer to Figure 11-8 above to answer the following questions.
a. Identify the curves in the diagram.
A ________ B ________ C ________
b. What is the numerical value of fixed cost when the quantity of output=10?
c. What is the numerical value of variable cost when the quantity of output=10?
d. What is the numerical value of total cost when the quantity of output =10?
e. What is the numerical value of average fixed cost when the quantity of output =10?
f. What is the numerical value of average total cost when the quantity of output =10?
g. On the graph identify the area that represents the total variable cost of production when the quantity of output =10.
h. On the graph identify the area that represents the fixed cost of production when the quantity of output =10.
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