Table 16-5
Consider the Following Duopoly Game -Refer to Table 16-5

question 23

Multiple Choice

Table 16-5
Consider the following Duopoly game. $\begin{array}{|c|c|c|c|}\hline&&\text { Firm B }\\&&\text { U }&\text { D }\\\hline \text { Firm A }&\text { U }&\text { Firm A gets \$140 } & \text { Firm A get \$220 } \\&& \text { Firm B gets \$80 } & \text { Firm B gets \$160 } \\\hline &\text { D }&\text { Firm A gets \$160 } & \text { Firm A gets \$80 } \\&&\text { Firm B gets \$220 } & \text { Firm B gets \$100 } \\\hline\end{array}$
-Refer to Table 16-5.If both firms follow a dominant strategy, firm B's profits (losses) will be:

• A)-$100
• B)-$160
• C)$80
• D)$220

---

Definitions:

Conversion Costs

The aggregate expenditure on direct labor and manufacturing overheads used for turning raw materials into final products.

Frosting

In a culinary context, a sweet and fluffy coating or filling, usually made from sugar, butter, and flavorings, used to decorate or fill cakes and pastries. If referring to a financial term, there is no widely recognized definition fitting "frosting."

Prime Costs

The direct costs directly attributable to the production of goods, including direct materials and direct labor.

Conversion Costs

The total expenses of direct labor plus manufacturing overheads spent in transforming raw materials into completed goods.