Question

4.

Statement 1: "Internal labor markets make the most sense for firms during times of rapid technical change as this type of firm has greater access to employee with the constantly changing skills that are needed."

Statement 2: "Rapid promotions early on in an employees career provide good incentive to work hard in the early part of an employee's career in firms using the internal labor market approach."

Group of answer choices

Both statements are false.

Statement 2 is true, and 1 is false

Statement 1 is true, but 2 is false

Both statements are true

5.

Statement 1: "In a simultaneous choice game, it is often useful to imagine yourself in your opponent's situation and think about decisions that he/she would never make so that you don' have to worry about them."

Statement 2: "Sometimes when looking at a simultaneous choice game, there is no non-cooperative Nash equilibrium in mixed strategies, but you can always find one using pure strategies."

Group of answer choices

Statement 2 is true, and 1 is false

Both statements are true

Statement 1 is true, but 2 is false

Both statements are false.

6.

Statement 1: "In a sequential game it is sometimes an advantage to move second"

Statement 2: "The easiest way to solve many sequential games is to look at it from the last move and work backwards to the first move."

Group of answer choices

Both statements are true

Statement 1 is true, but 2 is false

Statement 2 is true, and 1 is false

Both statements are false.

7.

Question 71 pts

Statement 1: "One example of lowering consumer transaction costs is to make your product available to customers with a shorter wait in line than was previously necessary."

Statement 2: "In some circumstances lowering product quality can increase profitability."

Group of answer choices

Both statements are false.

Statement 1 is true, but 2 is false

Both statements are true

Statement 2 is true, and 1 is false

Answer 1

4. Statement 2 is true, and 1 is false.

Under internal labour market the pricing and allocation of labour are set through the administrative rules and regulations. Internal market is protected from the competition of external labour market. So during the period of rapid technological change the internal market give protection to the labours. They protect the labours through forms of job promotion and pay.  

5.Statement 1 is true, 2 is false

The player in a simultaneous game theory assumes that there choice is best and they don’t have proper knowledge about the actions by other players. Under this theory the decisions are simultaneous. The player makes strategy without knowing the strategies of other players. The player cannot find a pure strategy under this situation.

6 .Both the statements are true.

Under sequential game the player choose their action before knowing the selection of others. Here the player having an advantage to move second. The player having appropriate knowledge about the actions of other players in the game. The easiest way used here is the look after of all the decisions of the players.

7. Both the statements are true.

The consumer transaction cost is the total financial and non financial cost other than the product’s price. The lowering level of transaction cost can improve its availability to the customers who can’t purchase it when it was added. This transaction cost maintenance can improve the level of profitability among the producers. This low level transaction cost will attract more customers without reducing the actual price.