What is a Nash equilibrium? How is it different from a dominant strategy
The Nash equilibrium is a set of strategies where each firm (player) is said to be doing as well as it can given the actions of its competitors. With a dominant strategy, a firm (player) will do as well as it can regardless of the actions of its competitors.
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When a society takes increasing amounts of resources and applies them to the production of a specific good, resulting in increasing opportunity costs for each additional unit produced, which of the following applies?
A) the law of demand B) the law of supply C) the law of scarcity D) the law of increasing additional costs
If a production process creates pollution, a competitive market produces excessive pollution because
A) the firms do not include the social cost of the pollution in their profit-maximizing decisions. B) the firms place too high a price on society's cost of inflation. C) people are not injured by the pollution. D) zero pollution is optimal.