-The Above Figure Shows the Payoff to Two Airlines,A and B,of

question 11

Multiple Choice

-The above figure shows the payoff to two airlines,A and B,of serving a particular route.If the two airlines must decide simultaneously,which one of the following statements is TRUE?

• A) Firm A does not have a dominant strategy.
• B) Firm B does not have a dominant strategy.
• C) Neither firm entering is a Nash equilibrium.
• D) The outcome of the game is unpredictable.

---

Definitions:

Entrepreneurs

Visionary individuals who create, manage, and assume the risks of a new business venture, bringing new products or services to the market.

Production Innovations

Refers to new or improved methods of producing goods and services, which can increase efficiency and reduce costs.

New Products

Goods or services that have been recently introduced to the market, offering new features or benefits not previously available.

Entrepreneurial Function

The activities and responsibilities undertaken by entrepreneurs, including innovation, risk taking, and managing and planning for businesses.