The Following Payoff Matrix Shows the Profits Accruing to Two

question 60

Multiple Choice

The following payoff matrix shows the profits accruing to two firms,Company A and Company B,under different pricing strategies.In each cell,the figure on the left indicates Company A's payoff and the figure on the right indicates Company B's payoff.
Table 15-2
-Refer to Table 15-2.Using iterated dominance,one can conclude that in equilibrium:

• A)company A chooses a high price and company B chooses a medium price.
• B)both company A and company B choose a high price.
• C)both company A and company B choose a medium price.
• D)company A chooses a medium price and company B chooses a high price.

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Definitions:

Random Assignment

Assignment of participants in an experiment to groups in such a way that each person has an equal chance of being placed in any group.

Convenience Sampling

A sampling method where participants are selected based on their availability and willingness to take part, rather than using random selection.

Dependent Variable

In an experiment, the condition that may or may not change as a result of changes in the independent variable.

Vitamin Supplement

A dietary addition that provides nutrients, such as vitamins or minerals, intended to supplement one's nutrition.