Refer to the Information Provided in Table 14 -Refer to Table 14

question 179

Multiple Choice

Refer to the information provided in Table 14.1 below to answer the question that follows.
Table 14.1
B's Strategy
$\begin{array}{c}\begin{array}{lll}\\\hline\\\\\text { A's Strategy }\\\\\\ \end{array}\begin{array}{lll}\text { Raise Price }\\\hline \text {Raise A's profit \( \$ 3,000 \) }\\ \text {Price B's profit \( \$ 3,000 \) }\\\\ \text {Don't A's profit \( \$ 15,000 \) }\\ \text {Raise \( B^{\prime} \) s profit \( \$ 10,000 \) } \end{array}\begin{array}{lll}\text { Don't Raise Price}\\\hline\text { A's profit \( \$ 10,000 \) }\\\text { B's profit \( \$ 15,000 \) }\\\\\text { A's profit \( \$ 5,000 \) }\\\text { B's profit \( \$ 5,000 \) } \end{array}\end{array}$

-Refer to Table 14.1. The Nash equilibrium in the game is

• A) (Raise Price, Don't Raise Price).
• B) (Don't Raise Price, Raise Price).
• C) (Don't Raise Price, Don't Raise Price).
• D) Both A and B are correct.

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Definitions:

Standard Deviation

is a measure of the amount of variability or spread in a set of data.

Normally Distributed

This describes a probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Average Balance

The mean value derived from summing all balances over a certain period and dividing by the number of periods.

Standard Deviation

A gauge for the level of variance or scattering of values within a dataset.