TABLE 11- 3 the Payoff Matrix Below Shows the Payoffs

question 71

Multiple Choice

TABLE 11- 3 The payoff matrix below shows the payoffs to Firms A and B from producing different levels of output.The numbers in parentheses are (payoff to A,payoff to B) .
$\begin{array}{c}&\text { Firm B }\\\text { Firm A }&\begin{array}{l|c|c} & \begin{array}{c}\text { Produce } \\\text { 1000 Units }\end{array} & \begin{array}{c}\text { Produce } \\\text { 2000 Units }\end{array} \\\hline \text { Produce } & & \\\text { 1000 Units } & (100,100) & (10,150) \\\text { Produce } & & \\\text { 2000 Units } & (150,10) & (30,30) \end{array}\end{array}$
-Refer to Table 11- 3.From the payoff matrix we can infer that

• A)there is no Nash equilibrium in the game.
• B)it is optimal for Firm A to produce 2000 units of output regardless of what Firm B is doing.
• C)both firms are indifferent between an equilibrium (Produce 1000 units,Produce 1000 units)and (Produce 2000 units,Produce 2000 units).
• D)it is optimal for Firm A to produce 1000 units of output regardless of what Firm B is doing.
• E)it is optimal for Firm B to produce 1000 units of output regardless of what Firm A is doing.

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Definitions:

Hyper-

A prefix denoting above normal, excessively high, or increased in quantity.

Hypo-

A prefix denoting below, under, or less than normal, often used in medical terms to indicate a deficient or decreased state.

Angi/o

is a prefix related to blood vessels or lymph vessels.

Arteri/o

A prefix used in medical terms related to arteries, the blood vessels that carry oxygenated blood away from the heart.