Shelly's Company Produces Computers, Phones, and Tablets

question 13

Multiple Choice

Shelly's company produces computers, phones, and tablets. About six months ago, Shelly began to keep track of number of hours worked at the company, and the resulting output. When she compared the results, she found that the number of workers (and the hours they worked) remained relatively steady over the past six months; however, the work site's output improved considerably. This indicates that

• A) productivity at the work site has increased.
• B) the work site sold off some of its excess inventory.
• C) the company's prices have increased faster than the wages paid to workers.
• D) the company should hire more workers.

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Definitions:

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies while the other players keep their strategies unchanged.

Maximin Strategy

A decision-making rule used in game theory and statistics to maximize the minimum gain that can be achieved.

Dominant Strategy

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

Nash Equilibria

A concept in game theory where no player can gain by unilaterally changing their strategy, indicating a balance where each player's strategy is optimal given the other players' strategies.