The Nash Equilibrium in a Bertrand Game of Price Setting

question 14

Multiple Choice

The Nash equilibrium in a Bertrand game of price setting where all firms have different marginal cost is:

• A)efficient because all mutually beneficial transactions will occur.
• B)efficient because of the free entry assumption.
• C)inefficient because some mutually beneficial transactions will be foregone.
• D)inefficient because of the uncertainties inherent in the game.

Recognize the importance and methods of ensuring a sample is representative of a population.

Understand the distinction between hypotheses and theories and their roles in scientific research.

Identify the purpose and benefits of a double-blind study.

Understand the ethical considerations in conducting research, including the use of deception.

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Definitions:

Motivational Strength

The intensity of an individual's drive or willingness to pursue or achieve goals.

Potential Reward

A possible benefit or gain that might be obtained as a result of taking a certain risk or engaging in a particular action.

Expectancy Theory

A motivation theory stating that an individual's willingness to exert effort is a function of the expected outcome, the value of that outcome, and the perceived likelihood that effort will lead to desired performance.

Realistic Job Previews

An HR tool that provides prospective employees with a true depiction of what their job would entail, including both positive and negative aspects.