In 2008, a former Intel engineer has been charged with stealing trade secrets worth $1 billion. Intel owns 90 percent of the worldwide market for microprocessors, AMD has the rest
Conducting R&D is very expensive so suppose that each of these firms can either steal R&D or develop their own R&D. If both firms develop their own R&D, economic profit will be $50 million each. If one company steals R&D, that firm earns $100 million in economic profit while the other firm earns $10 million. If both firms steal R&D, each firm breaks even. What is NOT true about this game? A) The outcome will not be a dominant strategy equilibrium.
B) A strategy is to steal R&D.
C) A firm will make more profit if it steals R&D.
D) A strategy is to conduct R&D.
C
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The rate of unemployment is calculated as the number of
A. people in the civilian labor force divided by the number of unemployed. B. unemployed workers divided by the number of employed workers. C. employed workers divided by the number of unemployed workers. D. unemployed divided by the number of people in the civilian labor force.
A product with qualities that consumers lack the expertise to assess without assistance is called a(n)
A. credence good. B. experience good. C. inferior good. D. search good.