Author Question: In a beauty contest game such as predicting the average of respondents choosing a number between 0 ... (Read 69 times)

rosent76 · **on:** Jul 1, 2018

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.