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

question 62

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,what happens if the government imposes a $20 per firm tax on firms that service this route?

• A) Neither firm has a dominant strategy.
• B) Not entering is a dominant strategy for both firms.
• C) Neither firm entering is a Nash equilibrium.
• D) Only firm A will enter.

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Definitions:

Neurons

Specialized cells that convey nerve signals; they are the basic elements of the brain and nervous system.

Excitatory Neurotransmitter

A chemical substance that promotes the firing of neurons and enhances the transmission of impulses across synapses.

Neuron

A neuron is a nerve cell that is the basic building block of the nervous system, responsible for transmitting information through electrical and chemical signals.

Electrical Charge

A physical property of matter that causes it to experience a force when placed in an electromagnetic field; comes in positive and negative forms.