The Players in a Two-Person Game Are Choosing Between Strategy

question 434

Multiple Choice

The players in a two-person game are choosing between Strategy X and Strategy Y. If the second player chooses Strategy X, the first player's best outcome is to select X. If the second player chooses Strategy Y, the first player's best outcome is to select X. For the first player, Strategy X is called a

• A)dominant strategy.
• B)collusive strategy.
• C)repeated-trial strategy.
• D)cartel strategy.

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Definitions:

Equilibrium

A state in which market supply and demand balance each other, resulting in stable prices.

Incentive to Change

A factor or set of factors that motivates individuals or entities to alter their behavior or decision-making.

Equitable

Fair or impartial in treatment or judgment without bias or favoritism.

Efficient

When resources are used in a way that maximizes the production of goods and services without wasting any resources.