Game Theory,what Is a Dominant Strategy

question 27

Multiple Choice

game theory,what is a dominant strategy?

• A)A strategy that leads to the best possible outcome for both firms.
• B)Any strategy that leads to a Nash equilibrium.
• C)A strategy that yields a minimax outcome.
• D)A strategy that leads to the best outcome for a firm no matter what strategy the other chooses.
• E)none of the above

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Definitions:

Carbon Fee

A charge imposed on the carbon content of fossil fuels, aimed at reducing carbon dioxide emissions.

Coase Theorem

An economic theory proposing that if trade in an externality is possible and there are no transaction costs, parties can negotiate solutions to conflicts that lead to an efficient outcome regardless of the initial allocation of property rights.

Pollution Tax

A tax levied on the amount of pollution emitted by firms to incentivize reduction in environmental harm.

Tax Revenue

The income that is gained by governments through taxation, which is used to fund public services and goods.