-The Above Figure Shows the Payoff to Two Airlines,A and B,of

question 48

Multiple Choice

-The above figure shows the payoff to two airlines,A and B,of serving a particular route.If the two airlines must decide simultaneously,which one of the following statements is TRUE?

• A) Since firm B has no dominant strategy, its decision is unpredictable.
• B) Since firm B's decision is unpredictable, firm A's decision is unpredictable.
• C) Neither firm entering is a Nash equilibrium.
• D) Firm B will not enter because it knows firm A will.

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Definitions:

Costs

The expenditure or amount of resources (financial, time, material) required to conduct activities or achieve certain outcomes.

Benefits

Advantages or positive outcomes that result from a specific action, situation, or policy.

Ultimate Causes

Explanatory factors in biology that address why organisms have the traits they do, often looking at historical reasons and evolutionary processes.

Evolutionary Pressures

Various factors in the environment that influence the survival and reproduction of species, driving the process of natural selection.