A firm's isoquant shows:
a. the amount of labor needed to produce a given level of output with capital held constant.
b. the amount of capital needed to produce a given level of output with labor held constant.
c. the various combinations of capital and labor that will produce a given amount of output.
d. none of the above.
QUESTION 2Credibility in threats and commitments in sequential games is based on
a. randomizing one's actions so they are unpredictable
b. explicit communications with competitors
c. effective scenario planning
d. analyzing best reply responses
e. none of the above
QUESTION 3In sequential games,
a. Players take turns, and each player observes what his or her rival did before having to move
b. Players take turns, but each player does not observe what his or her rival did before having to move
c. Players move at the same time
d. None of the above
QUESTION 4Graphically, the average productivity of labor is illustrated by:
a. the slope of the total product curve at the relevant point.
b. the slope of the marginal productivity curve at the relevant point.
c. the negative of the slope of the marginal productivity curve at the relevant point.
d. the slope of the chord connecting the origin with the relevant point on the total output curve.
QUESTION 5A key to analyzing subgame perfect equilibrium strategy in sequential games is
a. predictable behavior
b. an explicit order of play for at least some participants
c. information sets that are known with certainty
d. credible threats clearly communicated
e. randomness
QUESTION 6Suppose that Firm A deviates from a trigger strategy to support a high price. What is A's payoff from cheating?
a. 0
b. 50
c. -10
d. 25
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