In a dynamic game, rational players A) will reject outcomes ...

[colton]

In a dynamic game, rational players
 
  A) will reject outcomes that are not subgame perfect.
  B) use backward induction to determine best responses.
  C) have strategies that select a Nash equilibrium in the game as a whole.
  D) All of the above.

Question 2

In two-part pricing with identical consumers, a firm at least
 
  A) charges a lump-sum fee equal to the producer surplus.
  B) sets unit price equal to marginal cost.
  C) cannot maximize profit compared to single-price monopoly pricing.
  D) Both A and B.

[EAN94]

Answer to Question 1

D

Answer to Question 2

B