Refer to the information provided in Table 14.4 below to answer the question that follows.
Table 14.4B's Strategy
?Raise PriceDon't Raise Price?RaiseA's profit $6,000A's profit $20,000?PriceB's profit $6,000B's profit $30,000A's Strategy????Don'tA's profit $30,000A's profit $10,000?RaiseB's profit $20,000B's profit $10,000Refer to Table 14.4. If both firms follow a maximin strategy, the equilibrium in the game is
A. (Raise Price, Raise Price).
B. (Don't Raise Price, Raise Price).
C. (Raise Price, Don't Raise Price).
D. (Don't Raise Price, Don't Raise Price).
Answer: D
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Which of the following sets of goods might, under the right circumstances, be substitutes for an automobile?
A) Buses, trains, planes B) Powerboats, blimps, motorcycles C) Motels, tents, cardboard boxes D) Designer suits, fine wines, fancy homes E) All of the above.
Refer to Figure 12-1. If the firm is charging a price of $12 per unit
A) it is not selling any output. B) it is selling 700 units. C) it is making a profit. D) it breaks even.
What is a hierarchy?
If a market basket was defined in 2014 and it cost $10,000 to purchase the items in that basket in 2014, while it cost $12,000 to purchase those identical goods in 2015, then the inflation rate from 2006 to 2007 is
A. (100-83.3)/100*100%=16.7%. B. (100-100)/100*100%=0%. C. (120-100)/100*100%=20%. D. unknown given this data.