# Microeconomics

### What is the counter-intuitive solution to a mixed strategy? A) Player

What is the counter-intuitive solution to a mixed strategy? A) Player A makes Player B indifferent between its strategy choices. B) Player A makes itself indifferent between its strategy choices. C) Player A changes the rules of the game. D) There are no mixed strategies in most games.   ANSWER A

Date: September 9th, 2020

### Mutually Assured Destruction was a standing policy during the Cold War

Mutually Assured Destruction was a standing policy during the Cold War, in which the United States and the U.S.S.R. maintained and expanded nuclear arsenals beyond practical levels. What could explain such a phenomenon? A) insane public officials who were bent on world domination B) a prisoners’ dilemma C) a leader-follower type game D) tacit collusion […]

Date: September 9th, 2020

### Consider a car dealership advertises a three-year lease at \$250 per mo

Consider a car dealership advertises a three-year lease at \$250 per month. When you arrive to apply, you discover that the lease requires a down payment of \$3600 dollars. You will undertake the lease if A) you value the lease at least \$350 per month. B) you value the lease at least \$250 per month, […]

Date: September 9th, 2020

### Which of the following constitutes a mixed strategy Nash equilibrium o

Which of the following constitutes a mixed strategy Nash equilibrium of the Odds and Evens game? A) Play Even and Odd with 50% probability each. B) Play Even with 75% probability and Odd with 25% probability. C) Always play Even. D) This game has no mixed strategy Nash equilibrium.   ANSWER A

Date: September 9th, 2020

### Stores such as Costco and Sam’s Club require an annual membership befo

Stores such as Costco and Sam’s Club require an annual membership before you can shop there. This is a form of A) two-part pricing. B) price gouging. C) a tie-in sale. D) anti-competitive behavior.   ANSWER A

Date: September 9th, 2020

### Which of the following is LEAST likely characterized by mixed strategi

Which of the following is LEAST likely characterized by mixed strategies? A) the choice of whether to go to war or not B) the choice of which pitch to throw in baseball C) the choice of which play to run in football D) the choice of where to kick a soccer penalty shot   ANSWER […]

Date: September 9th, 2020

### A dominated strategy A) may be part of a Nash equilibrium. B) is neve

A dominated strategy A) may be part of a Nash equilibrium. B) is never played. C) can be a best response. D) is always part of a mixed-strategy Nash equilibrium.   ANSWER B

Date: September 9th, 2020

### A player can choose among three strategies: T, M, and B. Nevertheless,

A player can choose among three strategies: T, M, and B. Nevertheless, strategy B is dominated by strategy T. This means that A) strategy T is always played. B) strategy B is never played. C) strategy B will be part of a Nash equilibrium. D) strategy M is never played.   ANSWER B

Date: September 9th, 2020

### Which of the following is NOT part of solving a game? A) Write down a

Which of the following is NOT part of solving a game? A) Write down all possible combinations of strategies. B) Write down all possible payoffs and eliminate dominated strategies. C) Solve for any Nash Equilibrium. D) None of the above.   ANSWER D