A Relative Price Is

question 117

Multiple Choice

A relative price is

• A) the number of dollars that must be given up in exchange for the good.
• B) not an opportunity cost.
• C) also called the money price.
• D) the ratio of one price to another price.

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Definitions:

Nash Equilibrium

In game theory, the result of all players’ playing their best strategy given what their competitors are doing.

Maximin Strategy

A decision rule used in situations of uncertainty to maximize the minimum gain or to minimize the maximum loss.

Equilibrium

A state in a market or economy where supply equals demand, resulting in stable prices and quantities.

Maximin Strategy

A decision-making rule used in situations with uncertainty to maximize the minimum gain that can be achieved.