Using the Following Payoff Table for Hardaway Corporation and Paxton

question 43

Multiple Choice

Using the following payoff table for Hardaway Corporation and Paxton Industries. These two firms must make simultaneous pricing decisions. They can choose low, medium, or high prices. The payoffs given are in thousands of dollars of profit per month.
$\begin{array} { l } &\text { Paxton Industries }\\ \text {Hardaway Corp. }&\begin{array}{l|lc|ll|ll|}&{\text { Low }} && {\text { Medium }} && {\text { High }} \\\hline\text {Low }& \text { A } & & \mathrm{B} & & \mathrm{C} & \\&& \$ 30, \$ 30 & & \$ 45, \$ 20 & & \$ 32, \$ 20 \\\hline \text {Medium }&\text { D } & & \mathrm{E} & & \mathrm{F} & \\&& \$ 20, \$ 45 & & \$ 40, \$ 40 & & \$ 45, \$ 35 \\\hline \text {High }&\mathrm{G} & & \mathrm{H} & & \mathrm{I} & \\&& \$ 15, \$ 48 & & \$ 38, \$ 52 & & \$ 50, \$ 50 \\\hline\end{array}\\ &\text { Payoffs in thousands of dollars of monthly profits. }\\\end{array}$
-After the first round of eliminating dominated strategies for both firms,

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Definitions:

Loyal

The quality of being faithful or devoted to a person, country, group, or cause.

Stockholders

Individuals or entities that own shares of stock in a corporation, making them partial owners of the company.

Marginal Efficiency

The rate of return on an investment that is additional or marginal to the current level of investment.

Capital

Assets or resources, such as machinery, buildings, or money, that can be used to produce goods and services and generate wealth.