Refer to the below table. If the firms are playing a sequential game, then
Answer the question based on the following payoff matrix for a duopoly in which the numbers indicate the profit from either opening a coffee shop in a small town or not opening the coffee shop.
A. There is a dominant strategy for this game.
B. There is only one Nash equilibrium for this game.
C. There are two potential Nash equilibrium for this game.
D. Both firms will choose not to open a coffee shop.
C. There are two potential Nash equilibrium for this game.
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Travel Expert is a corporation that specializes in selling vacation packages in Transylvania and Stansylvania. There are a fixed number of shares of Travel Expert's stock available to the public. If the two countries go to war, making it much more dangerous to travel there, what will most likely happen to the Travel Expert's share price and the number of shares outstanding?
a. Price will fall; number of shares will fall. b. Price will fall; number of shares will rise. c. Price will rise; number of shares will remain the same. d. Price will remain the same; number of shares will fall. e. Price will fall; number of shares will remain the same.
Assume a pencil manufacturer is employing resources C and D in such quantities that the MRPs of the last units hired are $80 and $50 respectively. The price of resource C is $90 and the price of D is $35. This firm:
A. should hire less of C and more of D. B. should hire more of both C and D. C. should hire less of both C and D. D. is using the least-cost combination of C and D.