What Is True About the Following Payoff Matrix A) Only Player a Has a Dominant Strategy

question 45

Multiple Choice

What is true about the following payoff matrix? $\begin{array} { | l | l | c | } \hline & { \text { A: cooperate } } & \text { A: not cooperate } \\\hline \text { B: cooperate } & \text { A: } 2 , \text { B: } 2 & \text { A: } 5 , \text { B: } 5 \\\hline \text { B: do not cooperate } & \text { A: } 3 , \text { B: } 1 & \text { A: } 0 , \text { B: } 0 \\\hline\end{array}$

• A) Only player A has a dominant strategy.
• B) Only player B has a dominant strategy.
• C) Both player A and player B have dominant strategies.
• D) Neither player A nor player B has a dominant strategy.

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Definitions:

Long Steel Futures

Financial contracts to buy steel at a predetermined price at a specified time in the future, often used as a hedge against price fluctuations.

Shorting Index Futures

A strategy involving selling index futures contracts in anticipation of a decline in the index's value to profit from falling market prices.

Foreign Currency

The currency of another country that is required to conduct foreign trade and business transactions.

Futures Contract

A legal document that obligates parties to buy or sell a commodity at a price determined in advance, on a specified future date.