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

question 13

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 that firm A deviates from a trigger strategy to support a high price.What is the present value of A's payoff from cheating?

• A) 70
• B) 50
• C) 30
• D) 20

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Definitions:

Courteous

Exhibiting politeness, respect, and consideration for others in one’s behavior and interactions.

Role Perceptions

An individual's understanding of the responsibilities, behaviors, and performance standards expected from their position within an organization.

Person-Job Matching

The process of aligning the skills, interests, and attributes of individuals with the demands and characteristics of specific jobs to enhance job satisfaction and performance.

Employee Aptitudes

The natural abilities or talents that individuals possess, which can influence their performance and effectiveness in certain job roles.