Table 16-4
in the Following Duopoly Game, the Two Firms

question 170

Multiple Choice

Table 16-4
In the following duopoly game, the two firms can either set the price of their product high or low.In this market, customers are very price sensitive: when one firm sets a low price it steals the majority of customers from its competitor.The game is represented in the table below. $\begin{array}{|c|c|c|c|}\hline&&\text { Firm B }\\&&\text { High Price }&\text { Low Price }\\\hline \text { Firm A }&\text { High Price }&\text { Firm A gets \$500 } & \text { Firm A get \$300 } \\&& \text { Firm B gets \$500 } & \text { Firm B gets \$600 } \\\hline &\text { Low Price }&\text { Firm A gets \$600 } & \text { Firm A gets \$400 } \\&&\text { Firm B gets \$300 } & \text { Firm B gets \$400 } \\\hline\end{array}$
-Refer to table 16-4.The Nash-equilibrium in this market is:

• A)firm A gets $500, firm B gets $500
• B)firm A gets $300, firm B gets $600
• C)firm A gets $600, firm B gets $300
• D)firm A gets $400, firm B gets $400

Distinguish between the reliability and validity of a survey and its impact on survey outcomes.

Recognize the significance of conducting interviews and focus groups as primary research methods.

Acknowledge the significance and process of conducting primary research for gathering specific project data.

Understand the ethical consideration and importance of documentation in research, including quoting, paraphrasing, and summarizing.

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Definitions:

Cell Walls

The rigid outer layer found in plant, fungal, and certain bacterial cells, providing structural support and protection.

Restriction Enzymes

Proteins used in molecular biology that cut DNA at specific recognition nucleotide sequences, important in genetic engineering.

Bacteriophage Infections

Refers to the invasion and proliferation of bacteriophages, which are viruses that infect bacteria, often leading to the lysis (destruction) of the bacteria cell.

Foreign RNA

RNA that originates from a source other than the host organism, often referring to viral RNA or artificially introduced RNA.