A Consumer Has a Utility Function Given by U =

question 53

True/False

A consumer has a utility function given by U = min{x₁, 2x₂}.If good 2 has a price of zero, the consumer will always prefer more of good 2 to less.

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Definitions:

Sequential Game

A sequential game is a type of game theory model where players make decisions one after another, rather than simultaneously, allowing for the observation of previous choices.

Nash Equilibria

An idea in game theory in which no participant can benefit by altering their approach if all other participants maintain their strategies.

Dominant Strategy

A Dominant Strategy is a game theory concept where a player's best course of action remains unchanged regardless of what the opponent does.

Nash Equilibrium

A concept in game theory where each player's strategy is optimal given the strategies of other players, leading to a situation where no participant can benefit by changing strategies while the others remain constant.