Game Matrix III The Following Questions Refer to the Game Matrix Below. Each

question 71

Multiple Choice

Game Matrix III

The following questions refer to the game matrix below. Each firm has a choice of advertising, Ads, or not advertising, No ad. The profits each gets depend upon which it chooses.


-Refer to Game Matrix III.Which of the following is a property of this game?

• A) Both firms have dominant strategies.
• B) There is no pure strategy Nash equilibrium.
• C) There is a Nash equilibrium and it is Pareto optimal.
• D) There is a Nash equilibrium and it is not Pareto optimal.

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Definitions:

Consumer Price Index

An indicator assessing the mean fluctuation over time in the expenses borne by city dwellers for a designated assortment of consumer products and services.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling, often expressed as a percentage.

Base Year

A reference year against which economic growth, price levels, and other data are measured over time.

Consumer Price Index

An economic indicator that measures the average change over time in the prices paid by consumers for a basket of goods and services.