The Following Payoff Matrix Represents a Simultaneous-Move Game Between Two

question 142

Multiple Choice

The following payoff matrix represents a simultaneous-move game between two players: John and Trevor. Each player has to choices: Black or White. The first number in each cell is the payoff to John, and the second number is the payoff to Trevor.

-Refer to the table above.What is the equilibrium of this game?

• A) John and Trevor both choose Red.
• B) John and Trevor both choose Yellow.
• C) John chooses Red and Trevor chooses Yellow.
• D) There is no dominant strategy equilibrium in this game.

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Definitions:

Labor-saving

Technologies or methods that reduce the amount of work required to produce goods or services, often leading to increased efficiency and productivity.

Competitive Firm

A company operating in a market where it has little to no influence over the price of its product or service, typically due to the presence of many other firms offering similar products.

Labor Market

The market in which individuals offer their labor for employment and employers seek to hire labor.

Inflation-adjusted Wages

Wages that have been modified to reflect the purchasing power after accounting for inflation, often to measure real income changes over time.