When a game is played repeatedly
A) only customers learn.
B) customers and firms are both able to learn.
C) firms end up colluding.
D) a prisoner's dilemma will be the equilibrium.
QUESTION 2A change in technology that increases the marginal physical product of an input will:
a. shift the input demand curve to the left.
b. shift the input demand curve to the right.
c. result in a movement down along the input demand curve.
d. result in a movement up along the input demand curve.
QUESTION 3Which of the following is an advantage of mini-mills over vertically integrated giant mills?
a. The small size of mini-mills ensures economies of scale in steel production.
b. The small furnaces used in mini-mills depend less on coal and more on electricity.
c. The mini-mills do not require integration of casting and milling activities.
d. The small furnaces used by mini-mills can be operated as per the producer's will.
QUESTION 4Forms of commitments include
A) warranties.
B) guarantees.
C) advertising expenditures.
D) all of these choices are forms of commitments.
QUESTION 5Which of the following is false?
a. An increase in labor productivity will shift the demand curve for labor to the right.
b. An increase in wage will lead to an increase in the supply of labor.
c. A decrease in the nonwage income of workers would shift the labor supply curve to the right.
d. If job amenities deteriorate, it would lead to a reduction, or leftward shift, in the labor supply curve.
QUESTION 6According to the text, which of the following developments have taken place in the American steel industry during the past 40 years?
a. The percentage of steel produced in vertically integrated steel plants has increased.
b. The percentage of steel produced in vertically integrated steel plants has decreased.
c. More steel makers have integrated vertically into coal mining.
d. More steel makers have integrated vertically into iron ore mining.
QUESTION 7A commitment
A) is a promise.
B) is a contractual arrangement between parties.
C) is when one party states that they will not play a game that ends in a prisoner's dilemma.
D) is when a party states that they will engage in a certain type of behavior regardless of what others do.
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