Refer to the Normal-Form Game of Price Competition Shown Below

question 120

Multiple Choice

Refer to the normal-form game of price competition shown below. $\begin{array}{l}\quad\quad\quad\quad\quad\quad\text { Firm B}\\\text { Firm A}\begin{array}{|l|l|l|} \hline & \text { C } & \text { D }\\\hline & & \\ \text { A } & 0,7 & 5,2\\\hline & & \\\text { B } & 5,1 & 0,8 \\\hline\end{array}\end{array}$ Which of the following represents firm A's full strategy space?

• A) {A, C}
• B) {A, B}
• C) {(A, C), (A, D), (B, C), (B, D)}
• D) {C, D}

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Definitions:

Structural

Relating to the physical or organizational arrangement or construction of something.

High Involvement Systems

Organizational strategies designed to include employees in decision-making processes, enhancing commitment, and improving performance.

Narrow Jobs

Positions characterized by a highly specialized or limited set of tasks and responsibilities, requiring specific skills or knowledge.

Structural Variables

Aspects of an organization's setup, such as its hierarchy, departmentalization, and distribution of authority, that influence its functioning and culture.