Communication between players prior to the start of a game that ...

[cnetterville]

Communication between players prior to the start of a game that does NOT affect the payoffs is called
 
  A) cheap talk.
  B) ineffective bargaining.
  C) a binding verbal contract.
  D) pareto efficient.

Question 2

A cost function has economies of scale if
 
  A) average fixed costs fall as production increases.
  B) total costs fall as production increases.
  C) the average total cost falls as production increases.
  D) it is less expensive to produce goods jointly rather than separately.

[SeanoH09]

Answer to Question 1

A

Answer to Question 2

C

[cnetterville]

YES! Correct, THANKS for helping me on my review

[shewald78]

Thanks for the timely response, appreciate it