The Following Payoff Matrix Shows the Profits Accruing to Two

question 22

Multiple Choice

The following payoff matrix shows the profits accruing to two firms,Company C and Company D,under different pricing strategies.In each cell,the figure on the left indicates Company C's payoff and the figure on the right indicates Company D's payoff.
Table 15-1
-Refer to Table 15-1.If X = 145 and Y = 62,it is evident that _____.

• A)both firms have a dominant strategy.
• B)neither firm has a dominant strategy.
• C)only company C has a dominant strategy.
• D)only company D has a dominant strategy.

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Definitions:

Closing Entries

Entries recorded at the closing of an accounting cycle to shift balances from temporary to permanent accounts, readying the accounts for the upcoming period.

Post-Closing Trial Balance

A financial statement prepared after all adjusting and closing entries are made, serving to check the balance of debits and credits.

Adjusting Entries

Journal entries made at the end of an accounting period to update account balances to reflect accrued incomes and expenses for the period.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the owner's claim on the business resources.