In a simultaneous move, incomplete information game in which player 1 is unsure of which of two types player 2 is, player 1's strategy must include an action for each possible type that player 2 might be, but player 2 only needs to pick one action since he knows what type he is.

Answer the following statement true (T) or false (F)

False

Rationale: The beginning of the game is prior to "nature's" move. Thus, player 2 does not know what type she is when she comes up with a plan -- i.e. a strategy -- for the game. Thus, player 2's strategy specifies an action for each possible type that she could be. Player 1, on the other hand, must take an action without knowing what type he is playing -- and so would only have to choose one action in his strategy (unless he, too, can take on multiple types).

Economics

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If a firm is producing no output in the short run, then its total costs are zero

Indicate whether the statement is true or false

Economics

Which of the following is possible when the market fails?

A. It is impossible for government intervention to improve the mix of goods and services. B. The mix of goods and services is at the correct point on the production possibilities curve. C. The mix of goods and services is the optimal mix. D. The mix of goods and services is on the production possibilities curve.

Economics