-The Above Figure Shows the Payoff to Two Airlines,A and B,of

question 48

Multiple Choice

-The above figure shows the payoff to two airlines,A and B,of serving a particular route.If the two airlines must decide simultaneously,which one of the following statements is TRUE?

• A) Since firm B has no dominant strategy, its decision is unpredictable.
• B) Since firm B's decision is unpredictable, firm A's decision is unpredictable.
• C) Neither firm entering is a Nash equilibrium.
• D) Firm B will not enter because it knows firm A will.

---

Definitions:

Potential Solution

A possible answer or remedy to a problem or challenge, which has yet to be tested or implemented.

Functional Teams

Groups assembled within an organization, each member specializing in a particular function or area of expertise, working towards organizational goals.

Specialty Areas

Distinct categories within a broader field of study or profession, emphasizing a concentrated focus or expertise in specific aspects.

Cross-functional Team

A cross-functional team is a group of individuals with varied expertise and skills from different departments, working together towards a common goal.