A Strategy Is Dominated If

question 46

Multiple Choice

A strategy is dominated if:

• A) there are no other strategies that yield higher payoffs, regardless of others' choices.
• B) there is some other strategy that yields a strictly higher payoff regardless of others' choices.
• C) there is some other strategy that yields a strictly higher payoff in some circumstances and that never yields a lower payoff regardless of others' choices.
• D) there is some other strategy that yields a strictly higher payoff in some circumstances and may yield a lower payoff, depending upon other players' choices.

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Definitions:

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, measuring the benefit to consumers.

Tax

A compulsory financial charge imposed by a government on individuals or entities to fund public expenditures.

Tax Per Unit

A specific amount of tax imposed on each unit of a product or service, often used to regulate consumption or raise government revenue.

Buyers Pay

Buyers pay refers to the amount of money that consumers are required to spend to purchase goods or services.