9. In game theory, a dominant strategy is one A. In which the same strategy is c
ID: 1122845 • Letter: 9
Question
9. In game theory, a dominant strategy is one A. In which the same strategy is chosen by one firm regardless of the anticipated action of a second firm B. In which the firm gains the greatest competitive advantage C. That produces the greatest comparative advantage D. That both firms agree on independently 10. The demand for labor curve will be less elastic for the industry than for the firm because A. Industry demand for labor is more elastic than the firm's demand for labor B. If all firms hire more labor, the product price will rise C. If all firms hire more labor, diminishing returns will not set in as quickly D. If all firms hire more labor, increased output will lower product price and therefore the marginal revenue product 11. Because the monopsonist takes into account the effect that employment expansion has on wages paid to existing workers, it will A. Pay union workers more than nonunion workers B. Be exempt from minimum wage laws C. Employ less and pay less than the corresponding values under competition D. Employ more and pay more than the corresponding values under competition 12. Suppose a monopoly's inverse demand curve is P 100 -4Q, it produces a product with a constant marginal cost of 20, and it has no fixed costs. Compared to the consumer surplus if the market were perfectly competitive, consumer surplus is how much less when the monopolist practices perfect price discrimination? A) 3200 B) 1600 C) 800 13. Suppose a monopoly's inverse demand curve is P 100 - Q, it produces a product with a constant marginal cost of 20, and it has no fixed costs. How much more or less is the deadweight loss if the monopoly can practice perfect price discrimination compared to it practicing uniform pricing? A) The deadweight loss is smaller by 800 B) The deadweight loss is greater by 800 C) The deadweight loss is smaller by 1600 D) The deadweight loss is greater by 1600. 14. A price discriminating firm has two groups of customers. If the elasticity of demand for group 1 is -3, the elasticity of demand for group 2 is -1.5, and the price paid by group 1 is $12, the price for group 2 isExplanation / Answer
Question 9
A dominant strategy is said to be the strategy that a player will always choose to play regardless of the strategy played by the other player.
So, in a game theory, a dominant strategy is one in which the same strategy is chosen by one firm regardless of the anticipated action of a second firm.
The correct answer is the option (A).
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