In Game Theory, a Dominant Strategy Is One

question 2

Multiple Choice

In game theory, a dominant strategy is one

• A)in which the firm gains the greatest competitive advantage.
• B)in which the same strategy is chosen by one firm regardless of the anticipated action of the other firm.
• C)that produces the greatest comparative advantage.
• D)that both firms agree on independently.

---

Definitions:

Authorized Shares

The maximum number of shares that a corporation is legally permitted to issue, as outlined in its articles of incorporation.

Noncumulative

Pertains to certain preferential shares or rights that do not have the feature of accumulating unpaid dividends or benefits, contrasting with cumulative counterparts.

Preferred Stock

A type of stock that provides holders with certain privileges over common stockholders, typically with fixed dividends and priority in asset distribution upon liquidation.

Par Value

The face value of a bond or a stock's stated value per share, which may bear no relation to its market value.