The Table Given Below Represents the Payoff Matrix of Firms

question 68

Multiple Choice

The table given below represents the payoff matrix of firms A and B,when they choose to produce either high output or low output.In each cell,the figure on the left indicates Firm B's payoffs and the figure on the right indicates Firm A's payoffs.
-If X = 10 and Y = 15,then which of the following conclusions can be drawn from the information given in Table 14-3?

• A)The game has a Nash equilibrium and a dominant-strategy equilibrium.
• B)The game has a Nash equilibrium but not a dominant-strategy equilibrium.
• C)The game does not have a Nash equilibrium but has a dominant-strategy equilibrium.
• D)The game has neither a Nash equilibrium nor a dominant-strategy equilibrium.

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Definitions:

Individual Rights

Fundamental entitlements and freedoms that individuals inherently possess, protected by law, against infringements by governments or other entities.

Capitalism

An economic system where trade, industries, and the means of production are largely or entirely privately owned and operated for profit, characterized by competitive markets, private property, and capital accumulation.

Behaviorism

A theory of learning based on the idea that all behaviors are acquired through conditioning, emphasizing the role of external stimuli in shaping behavior, without regard to thoughts or feelings.

B.F. Skinner

An influential American psychologist known for his work in behaviorism and for developing the theory of operant conditioning.