Use the Following to Answer Question

question 87

Multiple Choice

Use the following to answer question:
Figure: Payoff Matrix II for Blue Spring and Purple Rain
-(Figure: Payoff Matrix II for Blue Spring and Purple Rain) Use Figure: Payoff Matrix II for Blue Spring and Purple Rain.The figure describes two producers of bottled water.Suppose Blue Spring charges a high price and Purple Rain does the same.In the next period,Blue Spring charges a low price and Purple Rain incurs a loss.If Purple Rain responds with a tit-for-tat strategy,it will:

• A)always charge a low price-the same as its dominant strategy.
• B)make random changes in its price so that Blue Spring is left with no systematic strategy.
• C)charge a low price in the next period and thereafter charge the same price that Blue Spring charged in the previous period.
• D)always charge a high price.

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Definitions:

Copolymers

Polymers derived from more than one species of monomer, resulting in a material with varied properties.

Polymers

Large molecules composed of repeated subunits called monomers, utilized in various materials and applications.

Natural Rubber

A polymer of isoprene (2-methylbuta-1,3-diene) that is harvested as a latex from the rubber tree and is used to produce various rubber products.

Identical Monomer

A repeating unit within a polymer where all monomers are the same chemical structure.