-The Above Figure Shows the Payoff Matrix for Two Firms

question 87

Multiple Choice

-The above figure shows the payoff matrix for two firms.A chemical firm must choose between a low level of production which yields one ton of pollution into a nearby lake and a high level of production which yields two tons of pollution into the nearby lake.A private beach on the lake must decide whether to operate or not.Increased pollution reduces the number of people who wish to visit the beach.Joint profits are maximized when

• A) the beach shuts down and the chemical firm produces 1 ton of pollution.
• B) the beach shuts down and the chemical firm produces two tons of pollution.
• C) the beach operates and the chemical firm produces 1 ton of pollution.
• D) the beach operates and the chemical firm produces two tons of pollution.

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Definitions:

Anxiety Responses

Physical and psychological reactions that occur in response to perceived threats or stressful situations, including feelings of fear, apprehension, and increased physiological arousal.

Behaviour Therapy

A therapeutic approach that seeks to modify maladaptive behaviors through reinforcement, punishment, and conditioning.

B. F. Skinner

A prominent psychologist renowned for his work in behaviorism, particularly the development of the theory of operant conditioning.

Hans Eysenck

A German-born British psychologist known for his work on intelligence and personality, particularly his development of the three-factor model of personality.