Your economics professor has decided that your class will not be graded on a curve but on an absolute scale. Therefore, it is possible for every student in the class to get an "A
" Your grade will not depend in any way on your classmates' performance. Based on this information, you decide that you should study economics three hours each day, regardless of what your classmates do. In the language of game theory, your decision to study three hours each day is: A) a dominant strategy.
B) a minimax strategy.
C) a maximin strategy.
D) a Prisoner's dilemma.
A
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Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. At an output of 30,000 units
A) the marginal cost of iced tea is greater than the marginal benefit; therefore, output is inefficiently high. B) producers should raise the price to $3 in order to sell the quantity demanded of 30,000. C) the marginal benefit of iced tea is greater than the marginal cost; therefore, output is inefficiently high. D) the marginal benefit of iced tea is greater than the marginal cost; therefore, output is inefficiently low.
Assuming conventional supply and demand curves, changes in the determinants of both supply and demand will generally:
A. alter both equilibrium price and quantity. B. alter equilibrium quantity but not equilibrium price. C. alter equilibrium price but not equilibrium quantity. D. have no effect on equilibrium price or quantity.