If a Firm Has a Dominant Strategy

question 19

Multiple Choice

If a firm has a dominant strategy:

• A) its optimal strategy depends on the play of rivals.
• B) its optimal strategy is always the same, even if payoffs change.
• C) it is determined by the behavior of only one key rival.
• D) it receives the same profits regardless of the strategy of rivals.
• E) its optimal strategy is independent of the play of rivals.

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Definitions:

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Shaping

A method of teaching new behaviors by using reinforcement until the target behavior is achieved, often through successive approximations.

Partial Reinforcement

A conditioning process in which a reward is not administered every time the desired action is performed, leading to more resistant behavior to extinction.

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