-The Above Figure Shows the Payoff Matrix for Two Firms,A

question 32

Multiple Choice

-The above figure shows the payoff matrix for two firms,A and B,choosing to produce a basic computer or an advanced computer.Now the payoff of the firm who produces a basic computer falls to 10 if the other firm chooses to produce an advanced computer.Then

• A)both firms will have dominant strategies.
• B)Nash equilibria will not change.
• C)joint profits will be maximized at the Nash equilibrium.
• D)Firm A and firm B will choose different actions.

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Definitions:

Urinary Bladder

A hollow muscular organ in humans and some other animals that collects and stores urine from the kidneys before disposal by urination.

Parasympathetic Axons

Nerve fibers that are part of the parasympathetic nervous system, responsible for transmitting impulses to organs and glands to support rest and digest functions.

Facial Nerve

The facial nerve, also known as cranial nerve VII, is responsible for controlling the muscles of facial expression, taste sensations from the anterior two-thirds of the tongue, and other functions.

Adrenergic Receptors

Proteins located on cell surfaces that mediate responses to epinephrine and norepinephrine, involved in the fight-or-flight response.