-The Above Figure Shows the Payoff to Two Airlines,A and B,of

question 62

Multiple Choice

-The above figure shows the payoff to two airlines,A and B,of serving a particular route.If the two airlines must decide simultaneously,what happens if the government imposes a $20 per firm tax on firms that service this route?

• A) Neither firm has a dominant strategy.
• B) Not entering is a dominant strategy for both firms.
• C) Neither firm entering is a Nash equilibrium.
• D) Only firm A will enter.

---

Definitions:

Quality of Life

An individual's overall assessment of their wellbeing, including not only wealth and employment but also the environment, physical and mental health, education, recreation and leisure time, and social belonging.

Overeducated

The state of having education or qualifications that exceed what is necessary for one's job or position.

Underemployed

Describes individuals working in a job that does not fully utilize one's skills, education, or availability, often resulting in less than desired work hours or undercompensation.

Foodie

An individual with a particular interest in food and culinary practices, often seeking new food experiences.