If a player has a dominant strategy in a simultaneous-move game, then she is sure to get her best outcome
Indicate whether the statement is true or false
False. Suppose player 1 has a dominant strategy in a two-player simultaneous move game. Then player two will choose the best response to that dominant strategy. This may not result in the highest payoff for player 1. The prisoners' dilemma is an example. All we can say for sure is that player 1 will achieve the highest payoff given the strategy of the opponent.
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The Gauss-Markov theorem will not hold if _____.
A. the error term has the same variance given any values of the explanatory variables B. the error term has an expected value of zero given any values of the independent variables C. the independent variables have exact linear relationships among them D. the regression model relies on the method of random sampling for collection of data
Refer to the information provided in Figure 6.2 below to answer the question(s) that follow.
Figure 6.2Refer to Figure 6.2. Assume Mr. Lingle is on budget constraint AC. If the price of a beer is $5, Mr. Lingle's monthly income is
A. $40. B. $80. C. $100. D. $200.