Answer the following statement(s) true (T) or false (F)
1. The Stackelberg equilibrium of a sequential game must also be a Nash equilibrium.
2. In a sequential game, guaranteed commitment to a strategy will make a player worse off.
3. A merger between Gateway, a manufacturer of computers, and Logitech, a manufacturer of components for computers, would be an example of horizontal integration.
4. The Sherman Act of 1890 and the Clayton Act of 1914 gave courts the power to prevent mergers that reduce competition and provided clear criteria to apply in determining when a merger would do so.
5. Social welfare consequences are ambiguous when two or more manufacturers merge to take advantage of economies of scale.
1. False
2. False
3. False
4. False
5. True
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Briefly describe the factors that contributed to the U.S. Current Account deficits of the 1990s
What will be an ideal response?
Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, eight million dollars on deposit with the Federal Reserve, and nine million dollars in excess reserves
Given this information, we can say First National Bank has ________ million dollars in required reserves. A) one B) two C) eight D) ten