Is it ever rational for unions to strike if they know that their members will never be able to make up for the wages they lose during the strike? Explain
Yes, it may be. This is because the resolve they show in one strike may benefit them in the next round of
negotiations with the firm. A long, protracted strike is a signal to the firm to reassess the workers' determination.
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Suppose that there are only two types of used cars, peaches and lemons. Peaches are worth $10,000 and lemons are worth $4,000. Without effective signals such as warranties, the owners of peaches cannot sell their cars for $10,000 because the
A) owners of peaches cannot convince buyers that their cars are worth $10,000. B) buyers cannot convince owners of peaches to sell their cars for $10,000. C) owners of lemons cannot convince buyers that their cars are worth more than $4,000. D) buyers cannot convince owners of lemons to sell their cars for $4,000.
In game theory, a strategy that is optimal no matter what your opponent does is called a dominant strategy
a. True b. False Indicate whether the statement is true or false