Majed Is Playing a "Game" Against Rejan,and He Has to Choose

question 82

Multiple Choice

Majed is playing a "game" against Rejan,and he has to choose an option without knowing what Rejan will choose.Majed must choose how much money he will contribute to a common pot instead of putting it in his own account,when having X amount in the common pot will benefit both him and Rejan.This situation is called a(n) :

• A)commons dilemma.
• B)Prisoner's Dilemma.
• C)risky shift.
• D)ultimatum game.

---

Definitions:

Total Product Curve

A graphical representation showing how the total output of a firm changes as the amount of a single input changes, holding all other inputs constant.

Average Product

The output per unit of input, calculated by dividing total production by the number of units of input.

Marginal Product

The additional output derived from the use of one more unit of a production input, while holding other inputs constant.

Technologically Efficient

A state of production where it is not possible to increase the production of one good without decreasing the production of another, given current technology.