-The Above Figure Shows a Payoff Matrix for Two Firms,A

question 81

Multiple Choice

-The above figure shows a payoff matrix for two firms,A and B,that must choose between a high-price strategy and a low-price strategy.Both firms setting a high price is not a Nash equilibrium because

• A) setting a high price is the dominant strategy for each firm.
• B) neither firm can improve its payoff by setting a low price given that the other firm is setting a high price.
• C) there is no dominant strategy for either firm.
• D) both firms can improve their payoff by setting a low price given that the other firm is setting a high price.

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Pertains to a condition where resources are allocated in the most efficient manner from the perspective of society as a whole.

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The presence or introduction of harmful substances or contaminants into the natural environment, causing adverse effects.

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Regulations that set limits on the amount of pollutants that can be emitted from sources like vehicles and factories.

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The contamination of the environment by harmful or poisonous substances, leading to detrimental effects on living organisms and the natural habitat.