A Dominant Strategy

question 12

Multiple Choice

A dominant strategy:

• A)is a strong strategy.
• B)guarantees a Nash equilibrium.
• C)is a strategy that is better for a player than any other the player might choose, regardless of the other player's strategy.
• D)depends on the other player's strategy.

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Definitions:

Evaluation

The process of determining the significance, worth, or condition of something, typically through careful appraisal and study.

Depreciation Tax Shield

The tax savings achieved by a company from the allowance for depreciation expenses, reducing taxable income.

Depreciable Basis

The initial cost of an asset that can be depreciated over time for tax purposes, minus any salvage value.

Tax Savings

The reduction in income taxes that results from taking a permissible deduction from taxable income.