Suppose two companies, Macrosoft and Apricot, and considering whether to develop a new product, a touch-screen t-shirt. The payoffs to each of developing a touch-screen t-shirt depend upon the actions of the other, as shown in the payoff matrix below (the payoffs are given in millions of dollars). Which of the following statements is correct?

A. Apricot does not have a dominant strategy.
B. Apricot's dominant strategy is to not develop a touch screen t-shift.
C. Apricot's dominant strategy is to develop a touch-screen t-shirt if Macrosoft does not.
D. Apricot's dominant strategy is to develop a touch-screen t-shirt.


Answer: A

Economics

You might also like to view...

By spreading her investments out over many different assets, an investor achieves

A) a higher expected return. B) increased risk. C) diversification. D) greater liquidity.

Economics

On-the-job experience causes labor productivity to increase through an improvement in human capital

a. True b. False Indicate whether the statement is true or false

Economics

An economy's production possibilities curve depicts different combinations of goods that can be

a. consumed by households in the economy since households are the suppliers of resources b. consumed by firms in the economy since firms actually do the producing c. produced in the economy with the available technology and resources d. produced and consumed by firms since they are the sole source of production in the economy e. bought and sold by both firms and households on the resource market

Economics

What incentive do manufacturers have to sell their products?

What will be an ideal response?

Economics