Explain the difference between a cooperative equilibrium and a noncooperative equilibrium in game theory
What will be an ideal response?
A cooperative equilibrium is one in which players in a game cooperate to increase their mutual payoff. A noncooperative equilibrium is one in which players don't cooperate but pursue their own self-interest.
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Grape juice prices increased by 20 percent in 2007. Suppose in response grape growers did not increase or decrease their grape production. The elasticity of supply is best described as
A) perfectly inelastic. B) perfectly elastic. C) inelastic. D) elastic.
During a recession, the political incentive structure will encourage politicians to
a. undertake sound economic policies that are consistent with stability and growth. b. adopt any policies, even bad ones, that give the appearance of taking action. c. undertake policies that promote long-term economic growth rather than short-term benefits. d. do nothing and let the recession run its course.