If the marginal cost of producing a good is increasing as a firm produces more of the good, then which of the following must be TRUE?

Refer to the scenario above. The best approach to play this game is to use:

A) a dominant strategy. B) backward induction to come to a decision. C) a credible commitment to influence the payoffs of the game. D) a mixed strategy.

If the quantity supplied stays the same no matter what the price is, then supply is

A) perfectly inelastic. B) perfectly elastic. C) unit elastic. D) undefined.