Marcus sells 300 candy bars at $0.50 each. His total costs are $125 . His profits are

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.

In contrast to changes in government spending, tax changes affect spending

A. directly. B. in the same proportion. C. by a greater amount. D. indirectly.