-The Above Figure Shows a Payoff Matrix for Two Firms

question 71

Multiple Choice

-The above figure shows a payoff matrix for two firms, A and B, that must choose between a high-price strategy and a low-price strategy. Both firms setting a high price is NOT a Nash equilibrium because

• A)setting a high price is the dominant strategy for each firm.
• B)neither firm can improve its payoff by setting a low price given that the other firm is setting a high price.
• C)there is no dominant strategy for either firm.
• D)both firms can improve their payoff by setting a low price given that the other firm is setting a high price.

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Definitions:

Resources

Assets, materials, or other items needed for individuals or organizations to function effectively.

Deployed

The action of moving resources into position for action or use.

Gatekeeper

An individual or group that controls access to something, often information or resources, within an organization or system.

Network Structure

The arrangement and connections among nodes or entities within a network, defining how they interact or relate to each other.