-Suppose MCI and AT&T Can Each Charge Either 3¢ or 4¢

question 88

Multiple Choice

-Suppose MCI and AT&T can each charge either 3¢ or 4¢ a minute for a long distance call. The above table illustrates the payoffs, in millions of dollars, from each of the four possible outcomes that could occur in their duopoly setting. If MCI charges 4¢ a minute and AT&T charges 4¢ a minute, then MCI's profit will be ________ million and AT&T's profit will be ________ million.

• A)$320; $320
• B)$200; $500
• C)$500; $200
• D)$450; $450
• E)$320; $500

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Definitions:

Assimilation

The cognitive process of fitting new information into pre-existing cognitive schemas, perceptions, and understanding.

Circular Reaction

A repetitive action that achieves a desired outcome, often seen in the developmental stages of infants as they learn to interact with their environment.

Cognitive Schema

A mental structure that represents some aspect of the world, organizing categories of information and the relationships among them, aiding in understanding and predicting the world.

First Habits

The initial routine behaviors or practices that individuals develop, which can form the foundation for later patterns of behavior.