In the payoff matrix:
A. both firms have a dominant strategy.
B. neither firm has a dominant strategy.
C. Alpha has a dominant strategy, but Beta does not.
D. Beta has a dominant strategy, but Alpha does not.
A. both firms have a dominant strategy.
You might also like to view...
Refer to Table 14-2. Suppose pricing PlayStations is a repeated game in which Wal-Mart and Target will be selling the game system in competition over a long period of time. In this case, what is the most likely outcome?
A) a noncooperative equilibrium in which each firm charges the high price B) a noncooperative equilibrium in which each firm charges the low price C) a cooperative equilibrium in which each firm charges the low price D) a cooperative equilibrium in which each firm charges the high price
Profits
A. are a cost of doing business because they are payments to others. B. are not a cost of doing business because they are owed to resource owners. C. are not a cost of doing business because they are often zero or negative. D. are a cost of doing business because entrepreneurs would not incur the risk of starting a business if they didn't expect to earn profits.