Use the Table Below to Answer the Following Question

question 5

Multiple Choice

Use the table below to answer the following question.
Table 14.3.1
-Consider the game shown in Table 14.3.1 based on potential gas prices between two competitors.The game is played repeatedly and the result is a cooperative equilibrium.The payoffs in the table show the economic profit of the firms.The most likely outcome is

• A)a cycle of first $0.95/litre,then $1.15/litre,etc.
• B)Hare sets her prices at $1.15/litre,and Turtle sets his at $0.95/litre.
• C)Hare sets her prices at $0.95/litre,and Turtle sets his at $1.15/litre.
• D)both set their prices at $1.15/litre.
• E)both set their prices at $0.95/litre.

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Definitions:

Dollar Amount

The value of an item, transaction, or financial figure expressed in units of currency.

Financial Position

A rephrased definition for Statement of Financial Position; it outlines a company's financial condition by showing its assets, liabilities, and equity at a certain date.

Current Assets

Resources that are anticipated to be turned into cash, sold off, or used up within one year or throughout the usual business cycle, whichever timeframe extends further.