Marginal Cost Is the

question 113

Multiple Choice

Marginal cost is the

• A) cost of an increase in an activity.
• B) total cost of an activity.
• C) cost of an activity minus the benefits of the activity.
• D) cost of all forgone alternatives.

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Definitions:

Nash Equilibrium

Nash Equilibrium is a concept in game theory where no player can benefit by changing strategies if other players keep their strategies unchanged.

Payoff Matrix

A table that shows the potential outcomes or payoffs from different decisions made by two or more players in a strategic setting.

Nash Equilibrium

A concept in game theory where each participant's strategy is optimal, given the strategies of all other participants, leading to a situation where no participant can benefit by changing strategies unilaterally.

Credible Threats

A declaration or signal that one party can make to convey they are prepared to follow through with a promised action if certain conditions are not met.