When there is an Equilibrium (or a Nash Equilibrium), we expect that:
a. once the firms get there, no one will change their strategy.
b. firms will tend to select a randomized strategy.
c. neither firm will care what it does.
d. this is always a dominated strategy.
a
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Consider two people, Sandy Roos, who earns $25,000 . and Gary Behrman, who earns $50,000 . If the current flat-tax rate is 20 percent, then
a. Gary would prefer a poll tax to a flat tax b. Sandy would prefer a poll tax to a flat tax c. Gary and Sandy both pay the same amount of tax d. Sandy would prefer the flat tax to a progressive income tax e. Gary would prefer a progressive income tax to the flat tax
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point A necessarily represents
A. only hybrid cars being produced. B. an unattainable production point. C. what society wants. D. the economy's optimal production point.