Suppose a player has a dominant strategy. Would she choose to play a mixed strategy (such as playing two strategies with probability 50-50)? Why or why not?
What will be an ideal response?
A dominant strategy is one best response to every possible strategy of the other player. A game with mixed strategies implies that the best action is to not choose any particular strategy. This means that, in a game with mixed strategies, neither player has a dominant strategy.
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Suppose the demand for widgets is given by QD = 100 - 5p - pd + 2I, where I is average consumer income, p is the price of lemons, and pd is the price of doodads. According to this equation, doodads are a(n) ________ for widgets
A) substitute B) complement C) input D) None of the above
Which of the following statements is true in the context of the long run?
a. All the factors of production are fixed. b. No new firms enter the market. c. The producer can vary all the factors of production. d. The firms earn positive economic profit. e. Large firms tend to acquire market power.