In the Game Depicted Below,firms 1 and 2 Must Independently

question 84

Multiple Choice

In the game depicted below,firms 1 and 2 must independently decide whether to charge high or low prices. $\begin{array}{c}\text { Firm 2}\\\text { Firm 1}\begin{array}{|l|l|l|} \hline &\text { High Price } & \text { Low Price }\\\hline & & \\\text { High Price } & (10,10) & (5,-5) \\\hline & & \\\text { Low Price } & (-5,5) & (0,0) \\\hline\end{array}\end{array}$ Which of the following are secure strategies for players 1 and 2,respectively?

• A) (high price, high price)
• B) (high price, low price)
• C) (low price, high price)
• D) (low price, low price)

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Definitions:

Anita Whitney

An American political activist involved in early 20th-century movements for social and labor reforms, later convicted under the California Criminal Syndicalism Act.

Fourteenth Amendment

Ratified in 1868, this amendment to the U.S. Constitution granted citizenship to all persons born or naturalized in the United States, including formerly enslaved people, and provided equal protection under the laws.

Supreme Court

The highest federal court in the United States, with ultimate appellate jurisdiction over all federal and state court cases that involve a point of federal law.

Schenck v. United States

A landmark 1919 Supreme Court case that established the "clear and present danger" test for determining when speech protected by the First Amendment could be limited.