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

question 94

Multiple Choice

Refer to the normal-form game of price competition shown below. $\begin{array}{l}\quad\quad\quad\quad\quad\quad\text { Firm B}\\\text { Firm A}\begin{array}{|l|l|l|} \hline & \text { C } & \text { D }\\\hline & & \\ \text { A } & 0,7 & 5,2\\\hline & & \\\text { B } & 5,1 & 0,8 \\\hline\end{array}\end{array}$ What are the pure Nash equilibrium strategies for this game?

• A) {(B, C)}.
• B) {(A, C) and (B, D)}.
• C) {(A, C)}.
• D) There is no pure strategy Nash equilibrium to this game.

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Definitions:

Equilibrium Market Wage

Another term for the wage rate at which the quantity of labor demanded equals the quantity supplied, ensuring labor market balance without excess supply or demand.

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or gender.

Ethnic Group

A community or population made up of people who share a common cultural background, heritage, language, or common ancestry.

Personal Characteristics

The distinct attributes or traits that define an individual's personality and behavior.