Refer to the information provided in Table 14.3 below to answer the question that follows.
Table 14.3B's Strategy
?AdvertiseDon't Advertise??A's profit $75 millionA's profit $200 million?AdvertiseB's profit $75 millionB's profit $50 millionA's Strategy????Don'tA's profit $50 millionA's profit $100 million?AdvertiseB's profit $200 millionB's profit $100 millionRefer to Table 14.3. What is the Nash equilibrium in the game?
A. (Don't Advertise, Advertise)
B. (Don't Advertise, Don't Advertise)
C. (Advertise, Advertise)
D. (Advertise, Don't Advertise)
Answer: C
You might also like to view...
In order for the law of diminishing returns to be present, we must have
a. at least one factor of production to be fixed. b. output decreasing as more laborers are hired. c. the price of labor increasing as more workers are hired. d. simultaneous changes in labor and capital. e. double the output when labor input is doubled.
If one perfectly competitive firm is the only one to raise its price above the market price, it will:
A.) Sell some output, but less than previously. B.) Not sell any output. C.) Sell more output than previously. D.) Sell the same amount of output as previously.
Which of the following statements is true?
A) The command system is remarkable at providing price signals that guide resources in a way that maximizes social surplus. B) Market economies minimize waste and provide incentives to all market participants to promote their own interests. C) Coordination of different economic agents and bringing them together to trade is a central problem of a free market economy. D) The broader interests of societies are met more often under a command system in comparison to a market system.
Holding other factors constant, the implementation of a federal job retraining program would likely
A) reduce cyclical unemployment and the natural rate of unemployment. B) reduce structural unemployment and the natural rate of unemployment. C) reduce frictional unemployment and the natural rate of unemployment. D) increase the natural rate of unemployment.