12.3 Simultaneous Decision Making and the Payoff Matrix

question 33

Multiple Choice

12.3 Simultaneous Decision Making and the Payoff Matrix

-Refer to Figure 12.7.The numerical data show daily profits for each of the two firms when they choose a specific pricing strategy.If both firms choose a high-price strategy,

• A) Omega will earn $300 daily profit and Zeta will earn $100 daily profit.
• B) Omega will earn $100 daily profit and Zeta will earn $300 daily profit.
• C) Both firms will earn $200 daily profit.
• D) Both firms will earn $150 daily profit.

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Definitions:

Prejudice

A preconceived opinion that is not based on reason or actual experience.

Hindsight Bias

The inclination to believe, after an event has occurred, that one would have predicted or expected the outcome.

Stereotype

A widely held but oversimplified and generalized belief about a particular category of people or things.

Negative Emotion

Emotional states considered to be unpleasant or harmful, such as sadness, anger, fear, and jealousy.