In a Simultaneous-Move Game,________

question 55

Multiple Choice

In a simultaneous-move game,________.

• A) each player has to make his choice after knowing his rival's choice
• B) each player has to make his choice without knowing his rival's choice
• C) there is always more than one Nash equilibrium
• D) there is always more than one dominant strategy equilibrium

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Definitions:

Short-Run Equilibrium

Short-run equilibrium occurs when in a market, the quantity supplied equals the quantity demanded at the current price, before any long-term adjustments are made.

MR > MC

A situation in marginal analysis where the marginal revenue (MR) exceeds the marginal cost (MC), suggesting a potential increase in profitability by expanding production.

P > ATC

A scenario in which the price of a good is greater than the average total cost of producing that good, indicating potential profitability for the firm.

Short Run

A period in economic analysis where at least one input is fixed while others can be varied.