According to the ________ hypothesis, unemployment may occur, and if it does, it will be temporary.

Use the information in the following table, which summarizes the payoffs (i.e., profit) to two firms that must decide between an average-quality and a high quality product, to answer the questions that follow:

Firm 2 Average Quality High Quality Firm 1 Average Quality 600, 600 400, 1100 High Quality 1100, 400 900, 900 a. What is each player's dominant strategy? Explain your reasoning. b. Referring to the table above, is this an example of a prisoner's dilemma game? Why or why not? c. Is there a Nash equilibrium? If so, what is it?

An increase in the price of one good can cause the demand for another good to increase if the goods are substitutes.

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