The Following Matrix Represents the Payoffs to Two Producers, Each

question 52

Multiple Choice

The following matrix represents the payoffs to two producers, each making a strategic choice either to keep the output at 5 units or at 10 units.


-Refer to Table 7-1.Which of the following output combinations represents the dominant strategy of the two players?

• A)Each player produces 5 units of output.
• B)Player A produces 5 units and Player B produces 10 units.
• C)Player A produces 10 units and Player B produces 5 units.
• D)Each player produces 10 units of output.

---

Definitions:

Flow of Earnings

Refers to the movement of profits or income generated by a business or investment over time.

Stock of Assets

Represents the total value of financial and physical assets owned by an individual, company, or country.

Wealth

The accumulation of valuable resources and assets, both tangible and intangible, that provide economic power or security to an individual or entity.

Wages and Salaries

Monetary compensation paid by employers to employees for their labor services, typically on an hourly, weekly, or annual basis.