The Following Table Shows Two Firms in a Duopoly

question 142

Multiple Choice

The following table shows two firms in a duopoly.Each firm makes its decision without knowledge of the other firm's decision.The payoffs for each firm represent economic profits,and each firm strictly prefers more economic profit than less.In this game,selling ________ subscriptions a month is a dominant strategy for Flixbuster and selling ________ subscriptions a month is a dominant strategy for Nextflix.

• A) 200; 200
• B) 200; 400
• C) 400; 200
• D) 400; 400
• E) 100; 100

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Definitions:

Vote Determination

The process by which decisions are made or leaders are chosen in a democratic system through the aggregation of individual votes.

Profit Maximization

The process or strategy of adjusting production and sale operations to achieve the highest possible profit.

Production Function

Describes the relationship between inputs used in production and the output generated from those inputs.

Output

The total amount of goods or services produced by a firm or economy over a specific period.