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A "properly mixed strategy" means a mixed strategy that does not assign all the probability to one pure strategy. In other words, it is not a pure strategy. Consider a simultaneous move game with the following payoff matrix:
Player 2
L
R
Player 1
A
4, 0
0, 3
B
2.5, 0
C
1, 1
a) Is pure strategy C strictly dominated by any other pure strategy of player 1? If so, write one out. If not, explain.
b) Is pure strategy C strictly dominated by any proper mixed strategy for player 1? If so, write one out. If not, explain.
c) Is pure strategy C a best response to some mixed strategy of player 2? If so, write one out. If not, explain.
In the long-run equilibrium, each firm in a perfectly competitive industry will choose the plant size associated with minimum long-run average cost. Is this TRUE or FALSE? And why?
Determinants of Private Demand for Education Rates of return on investment in education is only one of the factors determining the demand for private investment though it is
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prove that the utility approach and the indifference curve approach yield the same consumer equilibrium
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