Refer to Game Matrix III. In this game,
Game Matrix III
The following questions refer to the game matrix below. Each firm has a choice of advertising, Ads, or not advertising, No ad. The profits each gets depend upon which it chooses.
a. Firm A's dominant strategy is to advertise.
b. Firm A's dominant strategy is not to advertise.
c. Firm B's dominant strategy is to advertise.
d. Firm B has no dominant strategy.
c. Firm B's dominant strategy is to advertise.
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Refer to Figure 4-9. What area represents the portion of consumer surplus that has been transferred to producer surplus as a result of the price floor?
A) E B) B + C C) B D) B + E
Shortage of a good occurs if: a. the price of the good is higher than the equilibrium price
b. the government imposes a restriction on the consumption of the good. c. buyers want to buy more than sellers want to sell. d. buyers want to buy less than sellers want to sell.