TABLE 11- 3 the Payoff Matrix Below Shows the Payoffs

question 41

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) .
$\begin{array}{c}&\text { Firm B }\\\text { Firm A }&\begin{array}{l|c|c} & \begin{array}{c}\text { Produce } \\\text { 1000 Units }\end{array} & \begin{array}{c}\text { Produce } \\\text { 2000 Units }\end{array} \\\hline \text { Produce } & & \\\text { 1000 Units } & (100,100) & (10,150) \\\text { Produce } & & \\\text { 2000 Units } & (150,10) & (30,30) \end{array}\end{array}$
-Consider the following characteristics of a particular industry: - there are natural barriers to entry
- market price exceeds marginal cost of production
- there is no strategic behaviour in the industry This industry is likely to be

• A)one where each firm has limited market power.
• B)an oligopoly.
• C)monopolistically competitive.
• D)perfectly competitive.
• E)a monopoly.

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Definitions:

Strictly Liable

A legal principle where a party is held responsible for damages or loss without needing to prove negligence or fault.

Reasonable Force

Reasonable force refers to the minimum amount of force necessary to protect oneself, others, or property, without going beyond what is considered legally and morally acceptable.

Court Summons

An official notice calling someone to court to respond to a lawsuit filed against them.

Collection Agency

A business that pursues payments on debts owed by individuals or businesses.