Use the Table Below to Answer the Following Questions

question 15

Multiple Choice

Use the table below to answer the following questions.
Table 14.2.2
-Table 14.2.2 gives the payoff matrix in terms of economic profit for firms A and B when there are two strategies facing each firm: (1) charge a low price,or (2) charge a high price.The equilibrium in this game (played once) is a dominant strategy equilibrium because

• A)firm B reduces profit by more than firm A if both charge a lower price.
• B)firm B and firm A are of different size.
• C)the best strategy for each firm does not depend on the strategy chosen by the other firm.
• D)there is no credible threat by either firm to "punish" the other if it breaks the agreement.
• E)each firm will charge the higher price.

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Definitions:

Incorporators

Individuals who sign the articles of incorporation and are involved in the legal process of forming a corporation.

Incorporation Statute

A law that governs the formation, operation, and dissolution of corporations, providing the legal framework for businesses to obtain corporate status.

De Facto Corporation

A corporation that operates like a legally incorporated company, despite not having completed all required incorporation steps, often recognized for legal purposes.

State Government

The government of a specific state in a federal system, responsible for local laws, policies, and management of state-specific issues.