A Strategy Is Dominant If

question 4

Multiple Choice

A strategy is dominant if

• A) it yields a greater payoff than any other player receives.
• B) it yields a payoff at least as large as that from any other strategy, regardless of the actions of other players.
• C) the player cannot gain by changing strategy, assuming that no other player changes strategy.
• D) it is part of a Nash equilibrium.

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Definitions:

Dress Factory

A manufacturing facility where dresses are produced in large quantities.

Production Isoquants

Curves that represent combinations of various inputs that result in the same level of output, used in the analysis of production technology.

Marginal Product

The additional output that is produced by employing one more unit of a particular input, keeping all other inputs constant.

Machines

Mechanical or electrical devices that perform specific tasks or assist in completing work more efficiently.