Consider the Following Output-Choice Game for Two Firms

question 7

Multiple Choice

Consider the following output-choice game for two firms:

What is the outcome of the game if both firms use maximin strategies?

• A) Both firms choose low output levels.
• B) Both firms choose medium output levels.
• C) There is no clear outcome under a maximin strategy for both firms.
• D) There are two possible maximin outcomes --- Firm 1 chooses medium and Firm 2 chooses low, or Firm 1 chooses low and Firm 2 chooses medium.

Recognize the role and attributes of entrepreneurs in the economy.

Understand the impact of the assembly line on the transition of the American economy into different phases.

Understand the evolving definitions of family in Canadian society.

Recognize the legal changes affecting family structures, such as marriage, divorce, and child custody.