Which of the Following Is True of a Dominant Strategy

question 47

Multiple Choice

Which of the following is true of a dominant strategy?

• A)A dominant strategy guarantees a player a higher payoff than its competitor.
• B)A dominant strategy calls for a contingent course of action.
• C)A dominant strategy is the best response to any strategy that the other player might select.
• D)A dominant strategy minimizes the other player's payoff.
• E)A player has to have a dominant strategy in order to earn a profit.

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Definitions:

Taxable Income

The portion of an individual or entity's income upon which taxes are levied by the government, after all deductions and exemptions are factored in.

Average Tax Rate

The proportion of total income that is paid in taxes, calculated by dividing the total amount of taxes paid by the total income.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, indicating how much of any additional income will be paid in taxes.

Taxable Income

The portion of an individual's or entity's income that is subject to taxation by governmental authorities.