Refer to the above payoff matrix for the profits (in $ millions) of two firms (X and Y) making a decision to advertise or not. Which of the following is the outcome of the dominant strategy without cooperation?

A) Both firm X and firm Y choose not to advertise.
B) Both firm X and firm Y choose to advertise.
C) Firm X chooses to advertise while firm Y chooses not to advertise.
D) Firm X chooses not to advertise while firm Y chooses to advertise.


B

Economics

You might also like to view...

Identify three key factors that can cause a shift in the aggregate demand curve

What will be an ideal response?

Economics

Consider the utility function . Which of the following are true statements about the indifference maps represented by this function.

A.

MRS=-1 along the 45 degree line if and only if .

B.
MRS=-1 along a ray steeper than the 45 degree line if and only if .

C.
MRS=-1 along a ray shallower than the 45 degree line if and only if .

D.
All of the above.

E.
None of the above.

Economics

Which of the following World War I (1914–18) institutions reappeared in various forms during the Great Depression and/or World War II (1941–45)?

(a) The U.S. Grain Corporation (b) The War Industries Board (c) The United States Housing Corporation (d) All of the above

Economics

Labor market discrimination refers to

a. differing economic opportunities offered to persons according to their productivity. b. wage differentials based on productivity differences. c. differing economic opportunities based on personal characteristics. d. wage differentials based on seniority and human capital.

Economics