Please select True or false and explain why true or false

1. Game theory is a useful tool only if every player has a “dominant strategy.”

2. Some technologies are characterized for using factors of production in fixed proportions. However, this cannot be captured by a Cobb Douglas production function.
3. A backward bending supply curve will generate two equilibria; one of them will be stable, while the other one will be unstable.
4. In a game, if both players have dominant strategies, it is not necessary to figure out what is the probability that your rival will play strategy A or strategy B.
5. Since OPEC has more than two members, it is not well represented by Cournot-Nash model of strategic behavior.
6. A profit-maximizing monopolist will always set prices so that the markup over total costs is larger than one in absolute value.
7. A profit-maximizing monopolist operates in the inelastic portion of the demand curve only when it produces a luxury good.
8. If a producer had a mind-reading machine that allows it to know the willingness to pay of the consumers it could theoretically extract all consumer surplus.1.

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The detailed answer for the above question is provided below Answer 1False Game theory is not limite... View the full answer