Table 14-5 Martin and Lewis Each Run One of the Two Bingo

question 14

Multiple Choice

Table 14-5

Martin and Lewis each run one of the two bingo parlors in Schenectady. Both consider offering free rides to and from the parlors. Table 14-5 shows the payoff matrix containing the expected weekly profits for each bingo parlor.
-Refer to Table 14-5.Does Martin have a dominant strategy? If yes, what is it?

• A)Yes, Martin's dominant strategy is to offer free rides.
• B)No, Martin does not a dominant strategy-his best outcome depends on what Lewis does.
• C)Yes, Martin's dominant strategy is to not to offer free rides.
• D)Yes, Martin's dominant strategy is to wait to see what Lewis does first.

---

Definitions:

Fixed-Wage Contract

An employment agreement where the salary does not change regardless of economic conditions or performance levels.

Inflation

The quickness at which the comprehensive level of goods and services' prices rises, corroding purchasing ability.

Real Income

The earning power of a person's money, considering the effects of inflation on purchasing power.

Wages

Payment to resource owners for their labor.