Table 16-2
in the Following Duopoly Game, the Two Firms

question 158

Multiple Choice

Table 16-2
In the following duopoly game, the two firms can either set the price of their product high or low.The game is represented in the table below. $\begin{array}{|c|c|c|c|}\hline&&\text { Firm B }\\&&\text { High Price }&\text { Low Price }\\\hline \text { Firm A }&\text { High Price }&\text { Firm A gets \$1000 } & \text { Firm A get \$1250 } \\&& \text { Firm B gets \$1000 } & \text { Firm B gets \$1100 } \\\hline &\text { Low Price }&\text { Firm A gets \$800 } & \text { Firm A gets \$900 } \\&&\text { Firm B gets \$800 } & \text { Firm B gets \$900 } \\\hline\end{array}$
-Refer to Table 16-2.If the two firms wanted to achieve the optimal level of profit they would:

• A)both sell at a low price
• B)both sell at a high price
• C)collude to let firm A sell at a low price and firm B to sell at a high price
• D)collude to let firm A sell at a high price and firm B to sell at a low price

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Definitions:

Compulsions

Repetitive behaviors or mental acts that an individual feels driven to perform in response to an obsession or according to rules that must be applied rigidly.

Neurotransmitters

Chemical substances in the brain that transmit signals from one neuron to another, influencing mental processes and behaviors.

Neuroanatomy

The field of anatomy focused on examining the nervous system's composition and arrangement.

Test-Retest Reliability

The degree to which a test yields the same results when it is given more than once to the same person. Test-retest reliability can be evaluated by correlating a person’s score on a given test with the same person’s score on the same test taken at a later time. The higher the correlation between the two scores (as expressed in terms of a correlation coefficient) the more reliable it is.