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(Table: Polaris and Yamaha I) The payoffs represent profits in millions of dollars. Suppose that this simultaneous-move game is played once in each period for three periods. In period one, the outcome will be _____, and in period two, the outcome will be _____.
Positive Economics
Positive Economics is the branch of economics that deals with the description and explanation of economic phenomena, focusing on factual and cause-and-effect relationships.
Economic Variables
Quantitative measures that represent aspects of the economy or a company and can change over time, such as GDP, inflation rate, and unemployment rate.
Policy Makers
Individuals or groups responsible for making decisions that affect the economy, society, or governance.
Normative Economics
A branch of economics that expresses value judgments about economic fairness or what the economy ought to be like.
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