The Table Given Below Represents the Payoff Matrix of Firms

question 62

Multiple Choice

The table given below represents the payoff matrix of firms A and B,when they choose to produce low or high 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.
-Refer to Table 14-2.Which of the following statements about the two firms must be true?

• A)If Firm B produces low output,Firm A will also produce low output.
• B)If Firm B produces high output,Firm A will produce low output.
• C)If Firm A produces high output,Firm B will also produce high output.
• D)If Firm A produces low output,Firm B will produce high output.

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Definitions:

Chi-squared Distribution

A statistical distribution used extensively in hypothesis testing, particularly in tests of independence and goodness-of-fit.

Contingency Table

A table used in statistics to show the distribution of one variable in rows and another in columns, useful for analyzing the relationship between two categorical variables.

Test Statistic

A value, derived from sample data, that is used in a hypothesis test to determine whether to reject the null hypothesis.

Chi-squared Statistic

A measure used in statistics to evaluate the goodness of fit between observed values and those expected theoretically.