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

question 50

Multiple Choice

-The above figure shows the payoff matrix for two firms,A and B,selecting an advertising budget.The firms must choose between a high advertising budget and a low advertising budget.A Nash equilibrium is that

• A)firm A selects a high advertising budget and firm B selects a low advertising budget.
• B)firm A selects a low advertising budget and firm B selects a high advertising budget.
• C)both firms select a high advertising budget.
• D)both firms select a low advertising budget.

---

Definitions:

Proprietorships

Types of business organizations owned by a single person, where the owner is personally responsible for the business debts and obligations.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically including an income statement, balance sheet, and statement of cash flows.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations, calculated as current assets divided by current liabilities.

Liquidity

The ease with which an asset can be converted into cash without affecting its market price.