Questions:
Question 1
If one-time gains from defection are always less than the discounted present value of an infinite time stream of cooperative payoffs at some given discount rate, the decision-makers have escaped
• Question 2
A key to analyzing subgame perfect equilibrium strategy in sequential games is
• Question 3
In a game, a dominated strategy is one where:
• Question 4
The starting point of many methods for predicting equilibrium strategy in sequential games is
• Question 5
The Prisoner's Dilemma involves two spies who are held in separate soundproof rooms. But even if the two spies could communicate, what makes it difficult for them to achieve the cooperative solution (both not confessing)?
• Question 6
Third-degree price discrimination exists whenever:
• Question 7
____ is a new product pricing strategy which results in a high initial product price. This price is reduced over time as demand at the higher price is satisfied.
• Question 8
Which of the following pricing policies best identifies when a product should be expanded, maintained, or discontinued?
• Question 9
Firms that have a cover charge for their customers and charge for each item they purchase as well are exhibiting
• Question 10
To maximize profits, a monopolist that engages in price discrimination must allocate output in such a way as to make identical the ____ in all markets.
• Question 11
Mac trucks and their dealers would likely have an organizational form of
• Question 12
When retail bicycle dealers advertise and perform warranty repairs but do not deliver the personal selling message that Schwinn has designed as part of the marketing plan but cannot observe at less than prohibitive cost, the manufacturer has encountered a problem of ____.
• Question 13
Vertical integration may be motivated by all of the following except:
• Question 14
When borrowers who do not intend to repay are able to hide their bad credit histories, a lender's well-intentioned borrowers should
• Question 15
When someone contracts to do a task but fails to put full effort into the performance of an agreement, yet the lack of effort is not independently verifiable, this lack of effort constitutes a
• Question 16
The Herfindahl-Hirschman index (also shortened to just the Herfindahl index) is a measure of ____.
• Question 17
____ occurs whenever a third party receives or bears costs arising from an economic transaction in which the individual (or group) is not a direct participant.
• Question 18
The lower the barriers to entry and exit, the more nearly a market structure fits the ____ market model.
• Question 19
The ____ is equal to the some of the squares of the market shares of all the firms in an industry.
• Question 20
The antitrust laws regulate all of the following business decisions except ____.
• Question 21
Any current outlay that is expected to yield a flow of benefits beyond one year in the future is:
• Question 22
In determining the optimal capital budget, one should choose those project's whose ____ exceeds the firm's ____ cost of capital.
• Question 23
If the acceptance of Project A makes it impossible to accept Project B, these projects are:
• Question 24
In cost-effectiveness analysis, constant cost studies:
• Question 25
Which of the following items is (are) not considered as part of the net investment calculation?