If It Is Optimal for Both Players in a Two-Person

question 46

Multiple Choice

If it is optimal for both players in a two-person, zero-sum game to select one strategy and stay with that strategy regardless of what the other player does, the game

• A) has more than one equilibrium point.
• B) will have alternating winners.
• C) will have no winner.
• D) has a pure strategy solution.

---

Definitions:

Weighted Average Cost of Capital (WACC)

A calculation of a company's cost of capital in which each category of capital (debt, equity) is proportionally weighted.

Internal Rate of Return (IRR)

IRR is a financial metric used to estimate the profitability of investments, calculated as the rate of return that sets the net present value of all cash flows from a particular project to zero.

Payback Period

The duration required for an investment to recover its initial outlay, calculated by dividing the initial investment by the annual cash inflows.

Time Value of Money

The concept that money available now is worth more than the same amount in the future due to its earning capacity.