Author Question: Which of the following situations is likely to generate noncooperative behavior in repeated games? ... (Read 37 times)

deesands · **on:** Jul 1, 2018

Which of the following situations is likely to generate noncooperative behavior in repeated games?

A) The game is repeated a finite number of times.
B) There are many players in the game.
C) The payoffs can change rapidly from one game period to the next.
D) All of these situations can generate noncooperative behavior.

Question 2

A 130,000 investment in new equipment this year will increase your firm's profits by 50,000 in each of the next 3 years. What is the net present value of this investment if your firm's opportunity cost of capital is 10 percent?

A) -5,657
B) 5,657
C) 124,343
D) 128,850