A Dominant Strategy Is

question 254

Multiple Choice

A dominant strategy is

• A)an equilibrium where each firm chooses the best strategy, given the strategies of other firms.
• B)a strategy chosen by two firms that decide to charge the same price or otherwise not to compete.
• C)a strategy that is obviously the best for each firm that is a party to a business decision.
• D)a strategy that is the best for a firm no matter what strategies other firms use.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, distributing a portion of the company’s earnings.

Expected Inflation Rates

The anticipated rate at which the general level of prices for goods and services will rise over a period of time.

Interest Rate

The percentage charged or paid for the use of money, typically expressed as an annual rate.

Inflation Adjustment

A modification made to the value of money to account for changes in purchasing power due to inflation.