Dave and Andy Are Competitors in a Local Market

question 38

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 $4000.If they both advertise on radio,each will earn a profit of $7000.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 $6000 and the other will earn $5000.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 $2000.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 $4000.If both follow their dominant strategy,what will Dave do and what will he earn

• A)advertise on TV and earn $4000
• B)advertise on radio and earn $7000
• C)not advertise and earn $10,000
• D)advertise on TV and earn $11,000

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Definitions:

Employment Testing

A process where tests are used by employers to evaluate the abilities and characteristics of current or potential employees.

Scholastic Aptitude Test (SAT)

A standardized test widely used for college admissions in the United States, assessing reading, writing, and mathematics skills.

Cognitive Ability Test

A standardized assessment designed to measure an individual's logical, mathematical, verbal, and spatial abilities.

Work Sample Test

A pre-employment testing method where candidates perform tasks or work activities that mirror the duties of the job they applied for.