Table 17-15

question 310

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.Which of the following outcomes represent the Nash equilibrium in this game?

• A) Q=2 for Firm A and Q=3 for Firm B.
• B) Q=3 for Firm A and Q=2 for Firm B.
• C) There is no Nash equilibrium in this game since neither player has a dominant strategy.
• D) Both a and b are correct.

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Definitions:

Legal Duty

An obligation imposed by law, requiring a person to conform to a certain standard of conduct toward others.

Res Ipsa Loquitur

A legal doctrine that allows for the presumption of negligence on the part of the defendant, inferred from the very nature of the accident or injury.

Burden Of Proof

The obligation to prove one's assertion or claim in a legal dispute.

Negligence Per Se

A legal doctrine where an act is considered negligent because it violates a statute or regulation that is designed to protect the public.