-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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Definitions:

Advantageous Genes

Genetic traits that provide a benefit to the individual, increasing the likelihood of survival and reproduction.

Subsequent Generations

Subsequent generations refer to the offspring or descendants that follow the current generation, highlighting the lineage or succession in families or species.

Natural Selection

The process by which organisms better adapted to their environment tend to survive and produce more offspring, a key mechanism in evolution.

Reproduce

The biological process by which organisms produce offspring, either sexually or asexually, ensuring the continuation of their species.