The Payoff Matrix Below Shows the Payoffs for Firm a and Firm

question 47

Multiple Choice

The payoff matrix below shows the payoffs for Firm A and Firm B,each of whom can either "cooperate" or "cheat." The numbers in parentheses are (payoff for A,payoff for B) . $\begin{array}{c}&\text { Firm B }\\\text { Firm A }&\begin{array}{l|cr} & \text { Coop erate } & \text { Cheat } \\\hline \text { Cooperate } & (30,30) & (10, x) \\\text { Cheat } & (x, 10) & (20,20) \end{array}\end{array}$
-An oligopolistic firm often detects a change in the demand for its product by first observing a change in

• A)sales.
• B)average cost.
• C)marginal cost.
• D)market price.
• E)marginal revenue.

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Definitions:

Servicing Rate

The Servicing Rate is the percentage of a loan amount charged to service a loan, including management of the account, collections, and customer service.

Average Service Time

The mean time taken to complete a service task, often used as a metric in operations management and customer service analysis.

Queue Length

The number of items or people waiting in a line to be processed or serviced.

FCFS

"First Come, First Served," a principle of service priority in which requests are processed in the order that they are received.