Letters are used to represent the terms used to answer this question: price (P), quantity of output (Q), total cost (TC) and average total cost (ATC). Which of the following equations is equal to a firm's average profit?
A) P - TC B) P - ATC C) (P - ATC) Q D) (P Q) - TC
Question 2
The study of how people make decisions in situations where attaining their goals depends on their interactions with others is called
A) game theory. B) dominant strategy equilibrium.
C) the prisoner's dilemma. D) Nash equilibrium.