Suppose Jim and Celia,a Married Couple,are Trying to Decide What

question 19

Multiple Choice

Suppose Jim and Celia,a married couple,are trying to decide what to do on a Friday.Jim would prefer to see Rambo X while Celia would prefer to see Das Auto,an arty foreign film.Both films are showing at the local Megaplex.The joy they receive from the films and seeing them together,or separately,is shown in the payoff matrix.Both Jim and Celia know the information contained in the payoff matrix.They purchase their tickets simultaneously,ignorant of the other's choice.
-Game theory is not useful in understanding perfect competition because

• A) by assumption,the firms are so small as to be unable to influence price and thus are not interdependent.
• B) perfectly competitive firms are honest.
• C) the players cannot be identified.
• D) the payoffs to their choices are unknown.
• E) their strategies cannot be understood.

---

Definitions:

Food Production

The process that involves growing crops and raising livestock for human consumption.

Paleolithic Villages

Early human settlements dating from the Paleolithic era, characterized by simple structures and tools, and a hunter-gatherer way of life.

Toolmaking

The process of creating instruments or devices that can be used to perform functions, traditionally associated with human development.

Pottery

The craft or process of making vessels and other objects with clay and other ceramic materials, which are fired at high temperatures to give them a hard, durable form.