Which of the following statements about the theory of consumer choice and static games with

complete information are true, and which are false? Give a brief justification of your answer.

1) The Weak Axiom of Revealed Preference [WARP] is an assumption imposes a

consistency across choice behaviour, and we cannot observe behaviour which violates it.

2) In a simultaneous move two-player game of complete information, a pure strategy Nash

equilibrium is such that the each player's strategy is a best-reply to every strategy of the

opponent.

3) In a mixed strategy, a player is randomizing between pure strategies that yield different

expected payoffs.

4) Given a profile of opponents' strategies, a player's best response is always unique.

5) A rational consumer chooses the action with the highest expected utility.