Consider the Same Football Setting as in the Previous Question,but

question 1

Multiple Choice

Consider the same football setting as in the previous question,but now suppose the payoffs (probabilities of winning) are given by the following normal form: The Nash equilibrium is (equilibria are)

• A) the offense runs and the defense plays for the run.
• B) both pick their choice at random with the offense focusing more on the run and the defense on defending the pass.
• C) both pick their choice at random with the offense focusing more on the pass and the defense on defending the run.
• D) both pick their choice at random with equal probability of either play.

---

Definitions:

Differential Cost

The difference in cost between two alternative decisions or changes in output levels.

Differential Cost

The difference in cost between two business decisions, focusing on how costs change under different alternatives.

Product Cost Method

A cost-plus method of price setting in which only the costs of manufacturing the product are included in the cost amount to which the markup is added.

Selling Expenses

Expenses that are incurred directly in the selling of merchandise.