Author Question: Which of the following statements is TRUE about a non-cooperative game? A) When two players each ... (Read 147 times)

madam-professor · **on:** Jul 1, 2018

Which of the following statements is TRUE about a non-cooperative game?

A) When two players each have a dominant strategy, joint profits may not be maximized.
B) When two players each have a dominant strategy, joint profits are maximized.
C) When players use their best responses, joint profits are maximized.
D) None of the above.

Question 2

Suppose that each worker must use only one shovel to dig a trench, and shovels are useless by themselves. In the long run, an increase in the price of shovels will result in

A) fewer shovels being purchased to produce the same number of trenches.
B) more workers being hired to produce the same number of trenches.
C) the firm wishing to produce more trenches.
D) no change in the firm's input mix.