(Table) the Game Theory Table for Barbara and Helen (With

question 254

Multiple Choice

(Table) The game theory table for Barbara and Helen (with Barbara's profits in regular text and Helen's profits in italics) indicates that
$\begin{array}{c}\text { Barbara's Barbershop }\\\begin{array}{|l|l|ll|ll|}\hline && {\text { Low Price }} && {\text { High Price }} \\\hline \text { } &\text { Low Price } & \$ 2,000 & \$ 2,500 & \$ 3,500 & \$ 1,000 \\\hline& \text { High Price } & \$ 600 & \$ 3,900 & \$ 2,500 & \$ 2,700\\\hline \end{array}\end{array}$

• A) Barbara has a dominant strategy to earn profits, but Helen does not.
• B) Helen has a dominant strategy to earn profits, but Barbara does not.
• C) both Barbara and Helen have dominant strategies to earn profits.
• D) neither Barbara nor Helen has dominant strategies to earn profits.

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Definitions:

Budget Constraint

The limit on the consumption bundles that a consumer can afford to purchase, based on their income and the prices of goods and services.

Income

Income that is earned from work or investments, which is typically received at regular intervals.

Nuts

Edible seeds or fruits with a hard outer shell, often consumed as snacks or used in cooking.

Berries

Term used to describe small, pulpy, and often edible fruits, typically juicy, rounded, brightly colored, and having seeds.