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In constant sum game (zero sum game), if there are two parties then:

A. Both parties make better-off

B. Both parties make worse-off

C. Both parties become Neutral

D. One party can become better off only if another is made worse off

Correct Answer : D.


Constant Sum Game (Zero Sum Game)? A constant sum game is one in which the total pay-offs are the same for all possible combinations of players strategies. This means that each player can only gain at the expense of others; any players loss is balanced by an equal gain (or gains) made by the other players. A real life example of a constant sum game is gambling. If one player wins, other players must have lost the same amount. It is also called zero sum game b/c the sum of gains/losses of all players become zero .For example if there are two players then: Gains of one player + Losses of other player = 0}

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  2. When the output of a firm is increasing, its average fixed cost:
  3. If a straight line supply curve makes an intercept on the Y-axis, elasticity of supply is:
  4. Total Utility (TU) curve:
  5. In a competitive market, price is determined primarily by:
  6. Isocost line shows the combinations of labor and capital where a firms budget is:
  7. A demand schedule is shown as:
  8. If the demand curve remains unchanged and supply increases, the price will:
  9. An indifference curve shows the bundles of two goods among which a consumer remains:
  10. Cross-elasticity of demand or cross-price elasticity between two substitutes will be:
  11. When total product (TP) is maximum:
  12. Who developed the concept of Representative Firm?
  13. Which of the following formulae explain the term average revenue?
  14. When AC curve falls, MC curve falls:
  15. If the commodity is inferior then Income Effect (I.E) is:
  16. While buying two goods X and Y with unequal prices, to maximize total utility from his income, a consumer…
  17. The main contribution of Malthus is in the field of:
  18. Economic problems arise because:
  19. In case of monopoly, both AR and MR fall, but MR falls:
  20. In cournot model, during the process of adjustment, the number of firms:
  21. Law of Returns to Scale shows:
  22. In monopolistic competition, the real differentiation in products is due to difference in:
  23. The number of sellers in oligopoly are:
  24. The marshallian indirect utility function in the form of equation is:
  25. Perfect competition implies:
  26. The number of sellers in oligopoly is:
  27. Opportunity costs are also known as:
  28. In the modern theory of costs, the level of production which the firm considers feasible is known as:
  29. In monopoly, when average revenue curve falls:
  30. The relationship between MC and MP shown by the marginal cost concept is: