Table 17-17 This Table Shows a Game Played Between Two Firms, Firm

question 91

Multiple Choice

Table 17-17
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 17-17. 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:

Consumer Spending

The aggregate spending of families within an economy on goods and services.

45-Degree Line

A reference line in economics, usually on a graph, where all points along the line indicate where the values for the variables on the axes are equal.

Consumer Dollar

The purchasing power of a consumer's money, indicating the quantity of goods and services it can buy.

Consumer Market

The consumer market refers to the marketplace where individuals and households buy goods and services for personal use.