Dell and HP Must Both Simultaneously Prices for Their New

question 1

Multiple Choice

Dell and HP must both simultaneously prices for their new laptops.They can both either choose to set a Low or High price.The payoffs are as follows.If both firms set a Low price, Dell gets 5 and HP 6.If both firms set a High price, the payoffs are 7 to Dell and 8 to HP.If Dell sets a High price and HP chooses Low, the payoffs are 3 to Dell and 10 to HP.If Dell sets a Low price and HP opts for High, the payoffs are 9 to Dell and 1 to H.What statement is true?

• A)Dell has a dominant strategy, but HP does not have a dominant strategy.
• B)The dominant strategy equilibrium is (Low, Low).
• C)Each firm has a dominant strategy; this game is a prisoners' dilemma.
• D)b and c are true.
• E)Neither player has a dominant strategy; this is a prisoner's dilemma.

---

Definitions:

French Civil Code

A comprehensive set of laws that serves as the primary source of civil law in France, influencing numerous other civil law jurisdictions worldwide.

Non-Criminal Laws

Laws that govern disputes between individuals or private parties, including civil and administrative law, rather than criminal offenses.

Common Law

A body of legal rules derived from judicial decisions of courts and similar tribunals, as opposed to statutes passed by legislatures.

Arbitration Clauses

Provisions within a contract that require disputes to be resolved through arbitration rather than in court.