What is meant by the prisoners' dilemma? Do the players in the prisoner's dilemma game have a dominant strategy?
What will be an ideal response?
The prisoners' dilemma is a game where, although both players choose their dominant strategies, the equilibrium is not the best outcome for both players. For the players in a prisoners' dilemma game, confessing is a dominant strategy because it is each player's best response to any strategy the other player could choose.
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Which of the following is NOT true of the foreign-exchange market?
A) It is an over-the-counter market. B) Most foreign-exchange trading takes place in London. C) The busiest trading time is morning east coast time, when markets in New York and London are both open. D) Trading volume worldwide exceeds $1 trillion per day.
You operate a car detailing business with a fixed amount of machinery (capital), but you have recently altered the number of workers that you employ per hour
Three employees can generate an average product of 4 cars per person in each hour, and five employees can generate an average product of 3 cars per person in each hour. What is the marginal product of labor as you increase the labor from three to five employees? A) MP = 3 cars B) MP = 1.5 cars C) MP = 15 cars D) MP = -1 cars