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A Country May Place a Limit on the Volume of Imported

question 46

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A country may place a limit on the volume of imported citrus fruit that is allowed. This is an example of a(n) .


Definitions:

Negative-sum Games

Situations in which the total losses exceed the total gains, leading to a net decrease in wealth or benefit.

Incentive

A thing that motivates or encourages someone to do something, particularly in economic contexts to influence behaviors.

Dominant Strategy

A strategy in game theory that is best for a player regardless of the strategies chosen by the other players.

Nash Equilibrium

A concept in game theory where no participant can gain by unilaterally changing their strategy if the strategies of the others remain unchanged.

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