Use the Following to Answer Question 2- 4

question 16

Multiple Choice

Use the following to answer question 2- 4.
Consider the following information for a simultaneous move game: If you charge a low price (LP) and your rival charges a LP,you each will earn $5 million in profits.If both charge a high price (HP) ,each will each earn $10 million in profits.However,if one charge a LP and the other does not,the firm that charges a LP will earn $15 million and the other firm will earn $1 million.
-If the businesses last forever,then the Nash Equilibrium is

• A)for one firm to charge a HP forever
• B)for your firm charge a LP when the other firm does
• C)for each firm to charge HP until the rival does,and then to charge a LP forever.
• D)for each firm to charge LP until the rival does,and then to charge a HP forever.

---

Definitions:

Downward Systems

Communication channels that convey information and directives from higher levels of an organization to its lower levels.

Employee Rights

Legal or moral entitlements pertaining to individuals' workplace conditions, safety, and treatment.

Employee Relations

The management of relationships between employers and employees, focusing on minimizing conflicts and fostering a positive, productive workplace environment.

Organizational Standards

Established norms and criteria within an organization that guide the quality and performance of its processes, products, or services.