Refer to the Normal-Form Game of Price Competition in the Payoff

question 137

Multiple Choice

Refer to the normal-form game of price competition in the payoff matrix below. $\begin{array}{c}\text { Firm B }\\\text { Firm A}\begin{array}{|l|l|l|} \hline & \text { Low Price } & \text { High Price } \\\hline & & \\\text { Low Price } & 0,0 & 50,-10 \\\hline & & \\\text { High Price } & -10,50 & 20,20\\\hline\end{array}\end{array}$ Suppose the game is infinitely repeated,and the interest rate is 10 percent.Both firms agree to charge a high price,provided no player has charged a low price in the past.If both firms stick to this agreement,then the present value of firm A's payoffs are:

• A) 220.
• B) 110.
• C) 330.
• D) 550.

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Ageism

Discrimination or prejudice against individuals or groups based on their age, often directed towards the elderly.

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A collection of people engaged in continuous social relations, or a significant social group inhabiting the same geographic or social area, generally governed by the same political power and prevailing cultural norms.

Gerontophobia

An irrational fear, hatred, or aversion towards old people or aging, often resulting from societal stereotypes and misconceptions about the elderly.

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Preconceived opinion or bias, often based on stereotypes, towards people, places, or things, without adequate knowledge or reason.