The Following Table Shows the Payoff Matrix of the Two

question 106

Multiple Choice

The following table shows the payoff matrix of the two firms (Firm X and Firm Y) in dollars when they advertise and when they do not advertise. Table 11.1
- Refer to Table 11.1.If firm Y follows its dominant strategy and firm X does not then:

• A)firm X earns $150 and firm Y earns $200.
• B)firm X earns $50 and firm Y earns $200.
• C)firm X earns $150 and firm Y earns $180.
• D)firm X earns $50 and firm Y earns $100.
• E)firm X earns $150 and firm Y earns $100.

---

Definitions:

Tenth Year-end Deposit

The act of placing funds into a financial account or investment at the end of the tenth year of the account or investment's existence.

Annual Year-end Payments

Payments made at the end of a fiscal year, often related to taxes, dividends, or bonuses.

Interest Rate

The percentage of a sum of money charged for its use, often expressed annually.

Annual Rate

A percentage representing the interest, return, or changes expected over a one-year period for investments, loans, or growth calculations.