-The Above Figure Shows the Payoff to Two Airlines,A and B,of

question 48

Multiple Choice

-The above figure shows the payoff to two airlines,A and B,of serving a particular route.If the two airlines must decide simultaneously,which one of the following statements is TRUE?

• A) Since firm B has no dominant strategy, its decision is unpredictable.
• B) Since firm B's decision is unpredictable, firm A's decision is unpredictable.
• C) Neither firm entering is a Nash equilibrium.
• D) Firm B will not enter because it knows firm A will.

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Definitions:

Having Authority

The power or right to give orders, make decisions, and enforce obedience.

Socioeconomic Status

A measure of an individual's or family's economic and social position in relation to others, based on income, education, and occupation.

Financially Supporting

Providing monetary resources to aid someone or something, such as a family member, a cause, or an organization.

Acculturated

Being acculturated refers to having adapted to and adopting aspects of a new or different culture, often while retaining elements of one's original culture.