Use the Following to Answer Questions

question 115

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) . Which of the following choices describes a dominant strategy?

• A) Swifty will always set a low price, no matter Speedy's choice.
• B) Swifty will always set a high price, no matter Speedy's choice.
• C) Swifty will set a low price when Speedy sets a high price, but Swifty will set a high price when Speedy sets a low price.
• D) Swifty will set a high price when Speedy sets a high price, but Swifty will set a low price when Speedy sets a low price.

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Definitions:

Automotive Occupations

Professions involved in the design, development, manufacturing, and maintenance of vehicles.

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A condition in which the body or a region of the body is deprived of adequate oxygen supply at the tissue level.

Common Cold

A viral infectious disease of the upper respiratory tract that primarily affects the nose, throat, and sinuses, resulting in symptoms like sneezing, coughing, and a runny nose.