If the Above Payoff Matrix Is a Simultaneous-Move Production Game

question 67

Multiple Choice

If the above payoff matrix is a simultaneous-move production game, the Nash equilibrium is for

• A)both players to produce low output.
• B)both players to produce high output.
• C)play 1 to produce low output and player 2 to produce high output.
• D)play 1 to produce high output and player 2 to produce low output.

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Definitions:

Stereotypes

Generally believed, though rigid and simplified, views or concepts of a certain category of people or items.

Prejudices

Preconceived opinions or judgments about people or ideas that are based on limited information or stereotypes rather than direct experience or knowledge.

Self-fulfilling Prophecy

A forecast that, through a cycle of positive reinforcement between conviction and action, ends up fulfilling itself either directly or indirectly.

Conflict

A disagreement or clash between opposing ideas, interests, or forces.