Use the Following to Answer Questions

question 63

Multiple Choice

Use the following to answer questions:
Figure: Payoff Matrix for Gehrig and Gabriel
-(Figure: Payoff Matrix for Gehrig and Gabriel) The figure Payoff Matrix for Gehrig and Gabriel describes two people who sell handmade Davy Crockett figurines in San Antonio. Both Gehrig and Gabriel have two strategies available to them: to produce 5,000 figurines each month or to produce 7,000 figurines each month. For Gehrig and Gabriel, the dominant strategy is to:

• A) produce 5,000 figurines.
• B) produce 7,000 figurines.
• C) produce between 5,000 and 7,000 figurines.
• D) collude and increase production to more than 14,000 figurines.

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Definitions:

Directed Verdict

A ruling made by a judge in a jury trial, ordering the jury to deliver a specific verdict because the evidence presented could logically lead to only one conclusion.

Toxic Wastes

Hazardous wastes that are dangerous or potentially harmful to human health or the environment.

Discovery

The legal process by which parties in a lawsuit obtain information and evidence from each other to prepare for trial.

Interrogatories

Written questions from one party to a lawsuit to another, which must be answered formally.