Dave and Andy Are Competitors in a Local Market

question 409

Multiple Choice

Dave and Andy are competitors in a local market.Each is trying to decide if it is better to advertise on TV,on radio,or not at all.If they both advertise on TV,each will earn a profit of $4,000.If they both advertise on radio,each will earn a profit of $7,000.If neither advertises at all,each will earn a profit of $10,000.If one advertises on TV and other advertises on radio,then the one advertising on TV will earn $6,000 and the other will earn $5,000.If one advertises on TV and the other does not advertise,then the one advertising on TV will earn $11,000 and the other will earn $2,000.If one advertises on radio and the other does not advertise,then the one advertising on radio will earn $12,000 and the other will earn $4,000.If both follow their dominant strategy,then Dave will

• A) advertise on TV and earn $4,000.
• B) advertise on radio and earn $7,000.
• C) advertise on TV and earn $11,000.
• D) not advertise and earn $10,000.

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Definitions:

Examinees

Individuals who are taking an examination or test.

Pictures

can be used as visual aids or stimuli in various research or educational settings to evoke responses or assist in data collection.

Psychological Core

The representation of the “real” person which typically develops in early childhood and comes from parents, teachers, and caregivers.

Role-Related Behavior

The ways in which an individual acts in a particular situation, usually gained through modeling and social learning experiences.