Suppose Jordan and Lee Are Trying to Decide What to Do

question 47

Multiple Choice

Suppose Jordan and Lee are trying to decide what to do on a Friday. Jordan would prefer to see a comedy while Lee would prefer to see a documentary. One documentary and one comedy are showing at the local cinema. The payoffs they receive from seeing the films either together or separately are shown in the payoff matrix below. Both Jordan and Lee know the information contained in the payoff matrix. They purchase their tickets simultaneously, ignorant of the other's choice.  
Which of the following statements is true?

• A)Jordan does not have a dominant strategy.
• B)For Jordan, seeing a comedy is a dominant strategy.
• C)For Jordan, seeing a documentary is a dominant strategy.
• D)Jordon's dominant strategy depends on Lee's choice.

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Definitions:

Favorable Difference

A financial term indicating that actual revenues are higher than planned revenues or actual expenses are lower than planned expenses.

Unfavorable Difference

A situation where actual costs exceed the standard or expected costs, often referred to in budgeting and variance analysis.

Planned Results

The expected outcomes or objectives set by a business or project before it starts, often used for budgeting and performance evaluation.

Differences

Variances or disparities between entities, items, or processes that are being compared or evaluated.