Refer to the information provided in Table 14.1 below to answer the question that follows.
Table 14.1B's Strategy
?Raise PriceDon't Raise Price?RaiseA's profit $3,000A's profit $10,000?PriceB's profit $3,000B's profit $15,000A's Strategy????Don'tA's profit $15,000A's profit $5,000?RaiseB's profit $10,000B's profit $5,000Refer to Table 14.1. If both firms follow a maximin strategy, the equilibrium in the game is

A. (Raise Price, Raise Price).
B. (Raise Price, Don't Raise Price).
C. (Don't Raise Price, Don't Raise Price).
D. (Don't Raise Price, Raise Price).


Answer: C

Economics

You might also like to view...

A tax system in which the tax rate on everyone's first $10,000 of income is 10 percent, the tax rate on everyone's second $10,000 of income is 15 percent, and the tax rate on all income over $20,000 is 25 percent is a(n):

a. proportional tax. b. equitable tax. c. head tax. d. unit tax. e. progressive tax.

Economics

Goods and services purchased from international sources are

A. Net imports. B. Net exports. C. Exports. D. Imports.

Economics

During a period of hyperinflation the Fed would probably be doing each of the following except

A. raising the discount rate. B. lowering reserve requirements. C. raising interest rates. D. selling securities on the open market.

Economics

You have observed that every time you do 30 minutes of cardio exercise before taking an exam you get an A. You therefore conclude that to get an A on an exam, all you have to do is 30 minutes of cardio exercise before you take an exam. You have committed the

A. fallacy of logic. B. post hoc, ergo propter hoc fallacy. C. fallacy of division. D. fallacy of inductive reasoning.

Economics