The Following Table Shows the Payoff Matrix of the Two

question 2

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 12.1

-A Nash equilibrium occurs when:

• A)a unilateral move by a participant makes him better off.
• B)one can deviate from the equilibrium and improve the outcome.
• C)no one can move from the equilibrium and improve the outcome.
• D)participants have an incentive to deviate from the equilibrium.
• E)no one is better off.

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Definitions:

Adjusting Entry

An accounting entry made at the end of an accounting period to allocate revenues and expenses to the period in which they actually occurred.

Reversing Entry

An entry, made at the beginning of the next accounting period that is the exact opposite of the adjusting entry made in the previous period.

Disposes

Acts of transferring ownership or getting rid of assets, including selling, discarding, or recycling them.

Reversing Entries

Journal entries made at the beginning of an accounting period to reverse or cancel out adjusting journal entries made at the end of the previous period.