-The Only Two Firms in a Market Are Trying to Decide

question 94

Multiple Choice

-The only two firms in a market are trying to decide what price to charge.The payoff matrix for this duopoly game is shown above.The payoffs are thousands of dollars of economic profit.In the above game,in the Nash equilibrium,

• A) Firm A and Firm B are both making $40,000 in economic profit.
• B) Firm A and Firm B are both making $55,000 in economic profit.
• C) Firm A is making $60,000 and Firm B is making $55,000 in economic profit.
• D) Firm A and Firm B are both making $60,000 in economic profit.
• E) Firm A and Firm B are both making $35,000 in economic profit.

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Listen Carefully

The act of paying close attention to the speaker to understand and absorb the information communicated.

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Someone who listens carefully with the intention to evaluate and analyze the information being presented.

Strategies

Plans of action or policies designed to achieve a major or overall aim.

Critical Listening

The skill of listening with the intent to analyze and evaluate the content of the communication for decision making or problem-solving.