In the following diagram, How can the point Y1 be interpreted? Select more than one answer a. By complementarity, agents who invest will not affect other agents' investment decisions. b. With zero expected investment by others, everyone in the economy will decide not to invest. c. Some agents invest even if others in the economy don't. rational decision Privately (eg, individual investment level) D₁ Dz Expected decision by other agents (e.g., average investment level) d. Agents who invest expect to export their products to other countries. e. The S-shaped curve is increasing because of large spillover effects.

In the following diagram, How can the point Y1 be interpreted? Select more than one answer a. By complementarity, agents who invest will not affect other agents' investment decisions. b. With zero expected investment by others, everyone in the economy will decide not to invest. c. Some agents invest even if others in the economy don't. rational decision Privately (eg, individual investment level) D₁ Dz Expected decision by other agents (e.g., average investment level) d. Agents who invest expect to export their products to other countries. e. The S-shaped curve is increasing because of large spillover effects.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter7: Uncertainty

Section: Chapter Questions

Problem 7.8P

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