A defendant believes there is a 50 percent chance that the plaintiff will win $1,000,000 and a 50 percent chance that the plaintiff will lose and be awarded nothing (zero). The plaintiff believes that there is a 40 percent chance that they will win $1,000,000 and a 60 percent chance that they will be awarded nothing (zero). The plaintiff's litigation cost is $200,000 and the defendant's
litigation cost is $300,000. The defendant would be willing to pay any amount up to ________ to settle and the plaintiff would be willing to accept any amount greater than ________ to settle.
A) $600,000; $400,000
B) $800,000; $200,000
C) $200,000; $800,000
D) $700,000; $100,000
B) $800,000; $200,000
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If each player in a game uses a strategy that results in a Nash equilibrium outcome, the players are most likely to say
A) "I don't like my choice, because I think I could have done better." B) "Given the strategies chosen by the other players in the game, I probably could have done better if I had more time." C) "Given the strategies chosen by the other players in the game, I made the best possible choice." D) "There was no real strategy on my part, I basically made an educated guess."
In the basic aggregate demand - aggregate supply model, an increase in government purchases will in the short run lead to ______ in real GDP and ______ in the price level.
Fill in the blank(s) with the appropriate word(s).