Some public goods problems can be viewed as a game where no firms will invest in

Question

Some public goods problems can be viewed as a game where no firms will invest in the public good because each firm’s best response is not to invest if all the other firms do invest. It is possible to design a multi period game that will cause all firms to choose to invest equally to achieve the socially optimal quantity of the public good if

(a) firms evaluate the public good similarly (b) there are enough periods

(c) the discount rate is low or the period length small (d) 8a and 8b

(e) 8a and 8c
(f) 8a and 8b and 8c

(3 points) The most abundant greenhouse gas is

(a) carbon dioxide (b) methane

(c) water vapor (d) ozone

Explanation / Answer

The most abundant greenhouse gas is Water Vapor.

It is possible to design a multi period game that will cause all firms to choose to invest equally to achieve the socially optimal quantity of the public good if firms evaluate the public good similarly, there are enough periods and the discount rate is low or the period length small

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