The Table Below Shows the Payoff Matrix in the Form

question 85

Multiple Choice

The table below shows the payoff matrix in the form of short term profits for two firms,A and B,for two different strategies,investing in new capital or not investing in new capital.Payoffs are in millions of dollars. $\begin{array}{c}\quad \quad \quad \quad \quad \quad \quad \text { Firm } B\\\text { Firm } A\begin{array}{|l|l|l|}\hline& \text { Invest } & \text { Not Invest } \\\hline {\text { Invest }} & \$ 20 \text { for } \mathrm{A} & \$ 70 \text { for } \mathrm{A} \\& \$ 20 \text { for } \mathrm{B} & \$ 5 \text { for } \mathrm{B} \\\hline{\text { Not Invest }} & \$ 5 \text { for } \mathrm{A} & \$ 50 \text { for } \mathrm{A} \\& \$ 70 \text { for } \mathrm{B} & \$ 50 \text { for } \mathrm{B} \\\hline\end{array}\end{array}$
Refer to the figure above.The game is an example of a:

• A)cartel.
• B)credible promise.
• C)prisoner's dilemma.
• D)multiple equilibria game.

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Definitions:

Rural Populations

Communities or groups of individuals living in areas characterized by low population density and geographic distance from urban centers.

Alienation

A condition of feeling isolated, disconnected, or estranged from others or from society as a whole.

Modernization

A process of social and cultural change that is initiated by industrialization and followed by increased social differentiation and division of labor.

Culture Lag

The phenomenon wherein certain parts of a culture may evolve more rapidly than others, leading to social conflicts and mismatches between technology and societal norms.