________ Are Parameters to the Model and Generally Are Fixed

question 16

Multiple Choice

________ are parameters to the model and generally are fixed over time, while ________ are the outcomes of the model.

• A) Shocks; parameters
• B) Endogenous variables; exogenous variables
• C) Endogenous variables; shocks
• D) Exogenous variables; endogenous variables
• E) Parameters; system variables

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Definitions:

Nash Equilibria

A concept in game theory where no participant can gain by unilaterally changing their strategy if the strategies of others remain unchanged.

Maximin Strategy

In decision-making and game theory, a strategy which maximizes the minimum gain that can be achieved, focusing on the most favorable outcome of the worst possible scenarios.

Entry-Deterrence

Strategies employed by existing firms in a market to prevent or discourage new competitors from entering the market.

Sunk Costs

Expenses that have already been incurred and cannot be recovered, often considered in decision-making processes.