Explain the basic operations of an economic game
What will be an ideal response?
Games can be either cooperative, in which the firms collude, or noncooperative. The players of the game are the decision-makers in oligopolistic firms, and they devise strategies, which are rules used to make a decision. Payoffs are the outcomes of the strategies employed by all of the players.
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For a firm in monopolistic competition, the efficient scale is the amount of output at which ________ is a minimum
A) fixed cost B) average total cost C) average variable cost D) average fixed cost E) marginal cost
A bank failure occurs whenever
A) a bank cannot satisfy its obligations to pay its depositors and other creditors. B) a bank suffers a large deposit outflow. C) a bank has to call in a large volume of loans. D) a bank refuses to make new loans.