Multiple Choice
A small community has 10 people, each of whom has a wealth of $2,000.Each individual must choose whether to contribute $100 or $0 to the support of public entertainment for their community.The money value of the benefit that a person gets from this public entertainment is .65 times the total amount of money contributed by individuals in the community.
A) This game has a dominant strategy equilibrium in which all 10 citizens contribute $100 to support public entertainment.
B) This game has two Nash equilibria, one in which everybody contributes $100 and one in which nobody contributes $100.
C) This game has no Nash equilibrium in pure strategies, but has a Nash equilibrium in mixed strategies.
D) This game has a Nash equilibrium in which 5 people contribute $100 and for public entertainment and 5 people contribute nothing.
E) This game has a dominant strategy equilibrium in which nobody contributes anything for public entertainment.
Correct Answer:

Verified
Correct Answer:
Verified
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