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

question 4

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.The payoffs of this game are such that:

• A)if Row Restaurant expects that Column Cafe will choose its dominant strategy,Row should choose to not follow its own dominant strategy.
• B)profits at both firms would be highest if both firms follow their dominant strategies.
• C)both firms would benefit from a law that made publishing coupons illegal.
• D)an agreement to not publish coupons would be stable because with these profits neither firm has an incentive to defect.

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Definitions:

Storage Failure

A phenomenon in cognitive psychology where information fails to be retained in memory over time, leading to forgetting or inability to recall.

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Stimuli or signals that can trigger the recall of memories, helping the brain to access specific information stored in the memory.

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Evaluative methods used to assess an individual's ability to retrieve information or experiences from memory.