Answer the Question Based on the Payoff Matrix for a Duopoly

question 214

Multiple Choice

Answer the question based on the payoff matrix for a duopoly in which the numbers indicate the profit from either opening a coffee shop in a small town or not opening the coffee shop. If the firms are playing a sequential game, then

• A)there is first-mover advantage.
• B)the firm with the first move will choose not to open a coffee shop.
• C)the firm with the first move will choose to open a coffee shop.
• D)both firms will choose not to open a coffee shop, regardless of which firm chooses first.

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Definitions:

Proposition

An expression that conveys a judgment or opinion.

Traditional Square

A method of analyzing categorical propositions in the field of logic, typically involving the relationships between universal and particular statements.

Propositions

Assertions or statements that present an idea or opinion for consideration or debate.

Opposition

In logic and philosophy, the relation between two propositions that have corresponding subject and predicate but differ in quality, such as one being affirmative and the other negative.