Use the Following Table to Answer the Question : Table

question 63

Multiple Choice

Use the following table to answer the question : Table 14-1 : shows the payoffs to Firm A and Firm B if they choose to produce either high output or low output.In each cell,the figure on the left indicates Firm A's payoffs and the figure on the right indicates Firm B's payoffs.

-Refer to the payoff matrix in Table 14-1.Which of the following describes the dominant-strategy equilibrium in this game?

• A)Both firms produce low output
• B)Both firms produce high output
• C)Firm A produces low output and Firm B produces high output
• D)Firm A produces high output and Firm B produces low output

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Definitions:

Restatements

Scholarly works published by the American Law Institute, offering a comprehensive summary of common law and its application in specific areas of law.

Common Law

The body of law developed through decisions of courts and similar tribunals (the judiciary), as opposed to laws made by the legislature (statutory laws) or by executive action (regulations).

Restatements

Documents published by the American Law Institute, intended to distill the common law and its statutory elements to clarify the principles.

Common Law

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