​Use the Following Case from Question

question 51

Multiple Choice

​Use the following case from question
Two street racers are playing a simultaneous game of chicken.They have to race towards each other and whoever swerves first is chicken and faces shame,a loss of 8,while the winner enjoys a gain of 3.If neither stop,they would crash into each other,a loss of 10.If both of them swerve at the same time,they are both chicken and face a loss of 5 each
-​What would the B's best response be if player A does not stop?

• A)​Player A stops,Player B does not
• B)Player B stops,Player A does not
• C)Both players stop
• D)​Neither players stop

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Definitions:

New Equity

Refers to capital that a company raises by issuing new shares of stock, thereby giving investors ownership interests.

Additional Profits

Additional profits refer to the surplus income generated beyond the expected or normal income levels due to various factors, such as increased sales or reduced costs.

ROE

Return on Equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.

Total Assets

The sum of all current and non-current assets owned by a company, indicated on the balance sheet, representing the total resources available to a company.