Consider a game where individuals are asked to contribute to a public good. Then consider the best response function for individual i, with individual i's contribution measured on the vertical axis and "the average contribution by everyone else" on the horizontal. Then as the number of individuals increases, i's best response function shifts in.

Answer the following statement true (T) or false (F)

False

Rationale: It rotates inward, with the vertical intercept remaining constant.

Economics

You might also like to view...

Based on the figure above, curve A is the firm's

A) marginal cost curve. B) total cost curve. C) average total cost curve. D) total variable cost curve. E) total fixed cost curve.

Economics

In the figure above, if the market is unregulated,

A) more than the efficient amount of output will be produced. B) less than the efficient amount of output will be produced. C) the allocation of resources will be efficient because the efficient amount of output will be produced. D) the deadweight loss will be zero.

Economics