Glendale Community College » Economics » Econ 101 - Microeconomics » Winter 2022

Question #1

Game theory:

A. replaces the monopoly model.

B. is more restrictive than the standard supply/demand model.

C. is more flexible than the standard supply/demand model.

D. replaces the perfectly competitive market model.

Question #2

A Nash equilibrium is:

A. the output level that minimizes average total cost.

B. the payoff that maximizes the joint payoff.

C. the set of strategies such that no player can improve his or her position by changing his or her own action.

D. the strategy that maximizes the outcome of all the players.

Question #3

A set of strategies in which no player can improve his or her payoff by changing his or her own action is called:

A. a Vickrey position.

B. a Nash equilibrium.

C. a dominant strategy

D. a framing strategy.

Question #4

If the payoffs from strategy Y are always greater than strategy X,

A. strategy X strictly dominates strategy X.

B. strategy Y strictly dominates strategy X.

C. strategy X strictly dominates strategy Y.

D. than the payoffs are a Nash equilibrium.