(See Problem 1

question 9

Multiple Choice

(See Problem 1.) Alice and Betsy are playing a game in which each can play either of two strategies, leave or stay. If both play the strategy leave, then each gets a payoff of $400. If both play the strategy stay, then each gets a payoff of $800. If one plays stay and the other plays leave, then the one who plays stay gets a payoff of $C and the one who plays leave gets a payoff of $D. When is the outcome where both play leave a Nash equilibrium?

• A) Never, since $800 > $400.
• B) When $400 > C and D > $800 but not when $800 >D.
• C) When D > C and C > $400.
• D) Whenever D < $800.
• E) Whenever $400 > C.

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Definitions:

Strategic Repetition

A technique used in communication and advertising to reinforce a message or concept by repeating it in a deliberate manner.

Research Methods

Research methods are systematic strategies, techniques, or procedures employed to collect and analyze data in order to uncover new information or understand a topic better.

Topic Sentence

A sentence that expresses the main idea of the paragraph in which it appears, usually found at the beginning.

Main Idea

The central or most important thought or message of a text, speech, or conversation, around which the content is developed.