The Numbers in Each Cell Are Each Firm's Profits Refer to the Figure Above

question 39

Multiple Choice

The numbers in each cell are each firm's profits. $\begin{array}{c}\quad \quad \quad \quad \quad \quad\quad\quad\quad\quad\quad \quad \text { Column Cafe} \\\text { Row Restaurant } \begin{array}{|l|l|l|}\hline & \begin{array}{l}\text { Publish Coupons in } \\\text { Student Paper }\end{array} & \text { No Coupons } \\\hline \text { Publish Coupons in } & \text { Row: 25, } & \text { Row: 200, } \\\text { Student Paper } & \text { Column: } 25 & \text { Column: } 10 \\\hline \text { No Coupons } & \begin{array}{l}\text { Row: } 10, \\\text { Column: } 200\end{array} & \text { Row: } 120, \\& \text { Column: } 120 \\\hline\end{array}\end{array}$
Refer to the figure above.If Row Restaurant decides to publish coupons,Column Cafe would make the most profit if it:

• A)did not offer coupons.
• B)also offered coupons.
• C)it doesn't matter which strategy is chosen because Column Cafe will have the same payoff in either case.
• D)offered coupons half of the time and did not offer coupons the rest of the time.

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Definitions:

Government Power

The official authority and control exercised by the governing bodies of a state, encompassing all its mechanisms and actions.

Rational Behavior

Decision-making processes that are logical and based on weighing the benefits and costs of various options.

Goal-Oriented Behavior

A pattern of behavior driven by the pursuit of specific objectives or desired outcomes, often characterized by focused effort and planning.

Rawls

Pertains to John Rawls, an American political philosopher known for his work in moral and political philosophy, especially in the theory of justice as fairness.