Game theory is:
A. the study of how people behave strategically under different circumstances.
B. used by economists to evaluate behavior in a variety of settings.
C. a useful tool in predicting strategic behavior.
D. All of these statements are true.
D. All of these statements are true.
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Which of the following is a difference between accounting profit and economic profit?
a. Accounting profit includes only the implicit costs of a firm, while economic profit includes only the explicit costs of the firm. b. Economic profit includes explicit and implicit costs of a firm, while accounting profit includes only explicit costs of the firm. c. Accounting profit is calculated for the current year, while economic profit can be calculated only for previous years. d. Accounting profit is the profit that has already been made by a firm while economic profit is the prediction of the firm's profit in future.
An example of a sunk cost would be:
A. the admission fee you paid to enter a national park. B. the value of a lift ticket once you've started skiing. C. the cost of a movie ticket once you've started watching the movie. D. All of these are examples of sunk costs.