SCENARIO: PAYOFF MATRIX FOR AIRBUS AND BOEING

question 104

Multiple Choice

SCENARIO: PAYOFF MATRIX FOR AIRBUS AND BOEING
The payoff matrix supplied shows outcomes of various strategies
That Airbus and Boeing might follow in response to action on the
Part of the other company.This payoff matrix describes actions
In developing so­called super­jumbo jets that can carry 600 or
More passengers.In each element, the lower­left value gives
The outcome for Boeing based on the action of Airbus and the
Upper­right value gives the outcome for Airbus based on the
Action of Boeing.For example, in element A, each company will
Lose $10 million if they both decide to produce super­jumbo jets.
(Scenario: Payoff Matrix for Airbus and Boeing) Boeing has
Decided not to produce super­jumbo jets.Instead, it will
Continue to market its 450­passenger 747s.However, Airbus will
Produce super­jumbo jets.Is Boeing's decision correct?

• A)Yes; because it would lose profits if it produced a super­ jumbo jet.
• B)No; because it could earn more profits by not producing a super­jumbo jet.
• C)Yes; because it would neither lose nor earn more profits by producing a super­jumbo jet.
• D)No; because it would lose more profits if it produced a super­ jumbo jet.

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Definitions:

Plantation Agriculture

A form of commercial farming where crops are grown for profit. It typically involves large-scale operations and focuses on a few high-demand cash crops like sugar, cotton, and tea.

Soil Erosion

The removal of the top layer of soil due to water, wind, or human activity, leading to decreased soil fertility and increased vulnerability to environmental challenges.

Traditional Agriculture

Farming practices that rely on indigenous knowledge, natural resources, and cultural beliefs, often with a focus on sustainability.

Large-Scale Farming

Agricultural operations that involve extensive areas of land and high levels of mechanization and technology to produce large quantities of crops or livestock.