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Scenario 13.9 Consider the Following Game

question 105

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Scenario 13.9
Consider the following game:
Two firms are situated next to a lake, and it costs each firm $1,500 per period to use filters that avoid polluting the lake. However, each firm must use the lake's water in production, so it is also costly to have a polluted lake. The cost to each firm of dealing with water from a polluted lake is $1,000 times the number of polluting firms. Scenario 13.9 Consider the following game: Two firms are situated next to a lake, and it costs each firm $1,500 per period to use filters that avoid polluting the lake. However, each firm must use the lake's water in production, so it is also costly to have a polluted lake. The cost to each firm of dealing with water from a polluted lake is $1,000 times the number of polluting firms.   -What is true about dominant strategies in the game in Scenario 13.9? A)   Pollute  is a dominant strategy for both firms. B)   Pollute  is a dominant strategy for Lago only. C)   Don't Pollute  is a dominant strategy for both firms. D)   Don't Pollute  is a dominant strategy for Lago only. E)  There are no dominant strategies.
-What is true about dominant strategies in the game in Scenario 13.9?

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Definitions:

Pornography

Visual or written content intended to stimulate erotic feelings rather than aesthetic or emotional feelings.

Mass Media

Diverse media technologies that reach a large audience via mass communication, including newspapers, television, radio, and the internet.

Business Influence

The impact that companies or industries have on economic policies, consumer behavior, and the market environment.

Observations

The action or process of closely observing or monitoring something or someone.

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