In a Mixed Strategy Equilibrium

question 45

Multiple Choice

In a mixed strategy equilibrium:

• A) a player is indifferent between playing a dominated strategy and playing a non-dominated one.
• B) players choose mixed strategies, but the mixed strategy chosen by each is not necessarily a best response to the mixed strategies chosen by the others.
• C) players choose mixed strategies and the mixed strategy chosen by each is a best response to the mixed strategies chosen by the others.
• D) a player is indifferent between playing a dominated strategy and playing a non-dominated one; and players choose mixed strategies and the mixed strategy chosen by each is a best response to the mixed strategies chosen by the others.

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Definitions:

Commercial Paper

Commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for financing payroll, accounts payable, and inventories.

Prime Rate

The interest rate that commercial banks charge their most creditworthy customers, generally large corporations.

Unsecured Promissory Note

A type of debt instrument that doesn’t require collateral but is backed only by the borrower's promise to pay the lender back.

Cash Conversion Cycle

The time it takes for a company to convert its investments in inventory into cash flows from sales.