Table 17-14 This Table Shows a Game Played Between Two Players, a Players

question 228

Multiple Choice

Table 17-14
This table shows a game played between two players, A and B. The payoffs in the table are shown as (Payoff to A, Payoff to B) .

-Refer to Table 17-14.If player A chooses his/her best strategy,player B should

• A) choose right and earn a payoff of 2.
• B) choose right and earn a payoff of 3.
• C) choose left and earn a payoff of 1.
• D) choose left and earn a payoff of 0.

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Definitions:

Production Possibility Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs and production technology.

Efficient Allocation

The optimal distribution of resources among competing uses to maximize output or welfare.

Ppf (Production Possibility Frontier)

A curve depicting all maximum output possibilities for two goods, given a set of inputs and technology, when resources are fully and efficiently utilized.

Efficiently

Achieving maximum productivity with minimum wasted effort or expense.