In a Simultaneous Move Game with Two Players

question 33

Multiple Choice

In a simultaneous move game with two players,

• A)if neither player has a dominant strategy, we successively eliminate each player's subordinate strategy.
• B)a player chooses among two or more pure strategies according to pre-specified probabilities.
• C)if one player has a dominant strategy and the other doesn't, you can't reach a Nash equilibrium.
• D)if both players have a dominant strategy, these constitute their Nash equilibrium strategies.

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Definitions:

Marginal Productivity

The additional output derived from the use of one more unit of a variable input while other inputs remain constant.

Equilibrium Wage Rate

The equilibrium wage rate is the wage level at which the quantity of labor supplied by workers equals the quantity of labor demanded by employers in the market.

Marginal Productivity

The change in output resulting from employing one more unit of a particular input, keeping all other inputs constant.

Income Distribution

Refers to how a nation’s total GDP is distributed amongst its population.