Table 17-15

question 143

Multiple Choice

Table 17-15.This table shows a game played between two firms,Firm A and Firm B.In this game each firm must decide how much output (Q) to produce: 2 units or 3 units.The profit for each firm is given in the table as (Profit for Firm A,Profit for Firm B) .

-Refer to Table 17-15.In this game,

• A) neither player has a dominant strategy.
• B) both players have a dominant strategy.
• C) Firm A has a dominant strategy,but Firm B does not have a dominant strategy.
• D) Firm B has a dominant strategy,but Firm A does not have a dominant strategy.

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Definitions:

Competitive Industry

An industry characterized by a large number of firms competing with each other to provide goods or services to consumers.

Market Demand

The total quantity of a product or service that consumers are willing and able to purchase at various prices during a specified time period.

Market Equilibrium

A state in a market where the quantity demanded by consumers equals the quantity supplied by producers, leading to a stable price.

Competitive Industry

A sector of the marketplace characterized by numerous firms vying for market share, leading to benefits for consumers through innovation and lower prices.