If the managers of your firm have bounded rationality, then
A) the firm should fire them and hire more competent managers.
B) a Nash equilibrium does not exist.
C) they are limited in their ability to calculate and may not succeed in maximizing profits.
D) it is not possible to maximize profits.
C
Economics
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Assume you pay a premium of $0.50/bu for a put option with a strike price of $4.00/bu and that the current futures price is $3.75/bu. Then, the option is:
A. In-the-money B. At-the-money C. Out-of-the-money D. None of the above
Economics
All of these are characteristics of a competitive industry, except:
a. Many substitutes b. No barriers to entry c. Homogenous product d. Little or no information on rivals' products
Economics