Reference no: EM132290992
1. The joint payoffs to both players in a prisoners' dilemma would be higher if the players could collude.
True
False
2. Which of the following statements is true?
A. Players take actions that maximize their joint profits under a Nash equilibrium
B. One of the players must have a first-mover advantage in a two-player sequential game
C. Nash equilibria are only defined for repeated games
D. There may be no unique Nash equilibrium to a two-player simultaneous game.
BPO Services is in the business of digitizing information from forms that are filled out by hand. In 2006, a big client gave BPO a distribution of the forms that it digitized in house last year, and BPO estimated how much it would cost to digitize each form.
FORM TYPE Mix of Forms Form Cost
A 25% $0.25
B 25% $0.10
C 25% $0.15
D 25% $0.50
3. Please refer to above. If the client pays the cost for Form A for all forms processed, what is the average gain or loss earned across all forms processed?
A. Lose $0.10 per form
B. Break even
C. Gain $0.10 per form
D. Gain $0.15 per form