Use the Following to Answer Questions

question 156

Multiple Choice

Use the following to answer questions:
-(Table: Two Rival Gas Stations) Look at the table Two Rival Gas Stations, which shows a payoff matrix for two gas stations in a small town. Each firm can set either a high price or a low price, and customers view these two firms as nearly perfect substitutes. Profits in each cell of the payoff matrix are given as (Swifty, Speedy) . If each firm sets the price independently, the Nash equilibrium outcome will be:

• A) $100, $100.
• B) $150, $25.
• C) $25, $150.
• D) $50, $50.

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Definitions:

International Quality Standards

Guidelines and specifications established by international bodies to ensure products, services, and systems' consistency and quality across countries.

Value Chain

The sequence of activities that a company performs to design, produce, market, deliver, and support its product, adding value at each step.

Consecutive Steps

Sequential steps or actions that follow one directly after the other without interruption or deviation.

Inputs

The resources, materials, or information that are required to produce goods or services in a business or manufacturing process.