The above figure shows the payoff to two firms in an industry deciding to make an investment in worker safety. The dominant strategy for each firm
A) is to do the opposite of the other firm.
B) is to make the investment.
C) is to not make the investment.
D) does not exist.
C
Economics
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As new firms enter a market, the equilibrium price will
a. rise. b. fall. c. stay the same. d. impossible to predict.
Economics
At the beginning of a year, decision makers expect the general level of prices to increase at a 6 percent annual rate. The CPI increases from 150 to 154.5 during the year; this indicates that
a. decision makers underestimated the rate of inflation during the year. b. decision makers overestimated the rate of inflation during the year. c. decision makers accurately forecast the rate of inflation during the year. d. the rate of inflation during the year was 4.5 percent.
Economics