In the Following Games, All Payoffs Are Listed with the Row

question 37

Multiple Choice

In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second.
-Game 8 shows the payoff matrix in terms of profit (in millions of dollars) for two possible strategies: advertise or do not advertise. Which of the following is a true statement?

• A)Coke has a dominant strategy to not advertise.
• B)Pepsi has a dominant strategy to not advertise.
• C)The game has one Nash equilibrium.
• D)The game has multiple equilibria.

---

Definitions:

Variable Costs

Expenses that change in proportion to the activity of a business, such as materials and labor costs that vary with production volume.

Operating Income

Earnings from a company's core business operations, excluding expenses and revenues that are unrelated to the primary activities.

Unit Selling Price

The cost for one unit of a product when it is sold.

Unit Variable Costs

Costs that vary directly with the volume of production or sales, such as materials and labor, on a per-unit basis.