Nash equilibrium says:
I am doing the best, I can given what you are doing
You are doing the best, you can given what I am doing
Both a and b
None of the above
Correct Answer :
C. Both a and b
Nash equilibrium? Nash equilibrium (named after John Forbes Nash, who proposed it) is a term used in game theory to describe equilibrium where each players strategy is optimal given the strategies of all other players. There is no unilateral profitable deviation from any of the players involved. In other words, no player in the game would take a different action as long as every other player remains the same. Nash equilibrium is self-enforcing b/c when players are at a Nash equilibrium, they have no desire to move b/c if they do, then they will be worse off.}
Related Questions
The main contribution of Alfred Marshal is in the field of:
Research in mathematical economics
Economics of labor
Theory of production
Theory of demand
Who wrote An Introduction to Positive Economics?
R.G.Lipsey
Paul.A.Samuelson
E.D.Domar
J.M.Keynes
In case of monopoly, when total revenue is maximum:
MR is positive
MR falls
MR rises
MR is zero
The slutsky demand curve includes:
Income effect
Price effect
Substitution effect
None of the above
If a good is an inferior good then an increase in incomes of the consumers will:
Increase demand for the good
Increase supply of the good
Reduce the equilibrium price of the good
None of the above
Iso-product curve (isoquant) shows:
A given quantity of output that can be produced by various combinations of two inputs
Varying quantities of output that can be produced by the same combination of two factors
Combination of two factors that can give the least cost of production
Combination of two goods that cost the same amount to the producer
Utility means:
The want- satisfying power of a commodity
Usefulness of commodity
Eating of commodity
None of these
A producer attains the least cost combination when the relation between Marginal Rate of Technical Substitution (MRTS) and price (P) of the factors x and y is:
Pure monopoly exists:
When there is a single producer
When there is a single producer without any close substitute
When there is a single producer with close substitutes
When a few producers control the industry
In cournot model, at equuilibrium when MC = MR, the elasticity of demand is:
equal to one
zero
negative
equal to 2
The basic subject matter of economics is:
Money
Capital resources
Scarcity
Inflation
Demand is elastic when the coefficient of elasticity is:
greater than zero
less than one
greater than one
less than one
The income consumption curve (ICC) is the locus of points of consumer equilibrium resulting:
Only when the price of commodity X changes
Only when the price of commodity Y changes
Only when the consumers income is varied
None of the above
The expansion point is attained by joining:
Similar optimal combinations
Different optimal combinations
Both of them
None of them
In Prisoner Dilemma, the best choice of strategy is:
Stable
Unstable
Negative
Neutral
The average fixed cost (AFC) curve is asymptote to:
X-axis
Y-axis
Z-axis
None of the above
With the change in the factor prices, the slope of the expansion path will:
Not change
Also change
Increase
Decrease
The Cambridge School of Thought refers to the group of English economists who came under the influence of:
Alfred Marshal
J.M.Keynes
Paul A.Samuelson
A.C.Pigou
Marginal Productivity Theory deals with the theory of:
Distribution
Exchange
Market structure
Consumer behaviour
Equilibrium of a firm represents maximization of profits as well as:
Maximization of losses
Minimization of losses
Minimization of profits
None of the above
The Substitution Effect (S.E) is always:
Negative
Zero
Positive
Infinite
In the case of a giffen good, the income effect:
Is equal to the substitution effect
More than offsets the substitution effect
Reinforces the substitution effect
Only partially offsets the substitution effect
If a firm is producing output at a point where diminishing returns have set in, this means that:
Each additional unit of output will be more expensive to produce
Each additional unit of output will require increasing amount of inputs
Marginal product of the variable factor of production decreases as the quantity increases
All of the above
Who is the author of Problems of Capital Formation in Underdeveloped Countries?
R.Nurkse
N.Kaldor
S.kuznets
Alfred Marshal
Contraction of demand means:
Less quantity demanded at the same price
Less quantity demanded at a higher price
Less quantity demanded at a lower price
None of the above
An exceptional demand curve is:
Downward sloping
Upward sloping
Horizontal straight line
Vertical straight line
When total product increases at a decreasing rate:
MP = AP
MP < AP
MP > AP =0
MP > AP
The indifference curve technique:
Helps in separating the income effect and the substitution effect
Does not help in separating the two effects
Mixed up the two effects
None of the above
A demand schedule is shown as:
A function of price alone
A result of change in tastes
A result of increase in the size of the family
None of the above
Economic problems arise because:
Wants are unlimited
Resources are scarce
Scarce resources have alternative uses
All of the above