A subgame perfect Nash equilibrium
A) can be solved by backward induction.
B) is a set of strategies that are a Nash equilibrium in every subgame.
C) is a stronger form of Nash equilibrium.
D) All of the above are correct.
D
Economics
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The circular flow model assumes:
a. businesses and households own the factors of production. b. businesses own the factors of production. c. government owns the factors of production. d. households own the factors of production. e. firms, households, and the government own the factors of production.
Economics
Which of the following would be considered an implicit cost?
A. Health insurance of employees paid for by the firm B. The water bill of the firm C. The salaries paid to the managers of the firm D. Foregone rent on assets owned by the firm
Economics