-Intel and AMD Are a Duopoly That Produce CPU Chips

question 106

Multiple Choice

-Intel and AMD are a duopoly that produce CPU chips.Intel and AMD can conduct R&D or they can not conduct R&D.The table above shows the payoff matrix for the two firms.If AMD is playing a tit-for-tat strategy,then if Intel conducted R&D last period,AMD

• A) definitely conducts R&D this period.
• B) definitely does not conduct R&D this period.
• C) might conduct R&D or might not conduct R&D, depending on Intel's profit.
• D) might conduct R&D or might not conduct R&D, depending on its profit.
• E) might conduct R&D or might not conduct R&D, but more information is needed to determine its action.

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Definitions:

Bureau Of Labor Statistics

A U.S. government agency responsible for collecting and reporting labor market activity, working conditions, and price changes in the economy.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, calculated by taking price changes for each item in the predetermined basket of goods and averaging them.

Weekly

Pertains to something that occurs, is done or calculated every week.

Basket Of Goods

A fixed set of consumer products and services valued on a regular basis for measuring inflation in an economy or specific market.