​For the Following Question

question 43

Multiple Choice

​For the following question
Consider a simultaneous move game between a union and a company.If both the parties bargain hard,each would gain nothing.If only one party bargains hard the accommodating party gets a profit of $1 million while the bargaining party gets a $5 million,while if they both accommodate,they each get $3 million.
-​By threatening to lockout the workers,the firm has

• A)​Eliminated half of the strategies
• B)Forced the union to choose the best response in the firm's best interest
• C)Made it in the union's best interest to not strike
• D)​All of the above

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Definitions:

Cigarette Manufacturers

Companies engaged in the production and sale of cigarettes.

Burden

Often used in the context of taxation or regulations, indicating the weight of responsibility or negative impacts placed on individuals or organizations.

Deadweight Loss

The loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved, often due to market failure or government intervention.

Excess Burden

The cost to society created by market inefficiency, mainly due to taxes or government policies, that causes a deviation from an optimal allocation of resources.