The Table Given Below Represents the Payoff Matrix of Firms

question 45

Multiple Choice

The table given below represents the payoff matrix of firms A and B,when they choose to produce either high output or low output.In each cell,the figure on the left indicates Firm B's payoffs and the figure on the right indicates Firm A's payoffs.

If X = 15 and Y = 10,then the information in Table 14-3 implies that the game has:

• A)a Nash equilibrium and a dominant strategy equilibrium.
• B)a Nash equilibrium but not a dominant-strategy equilibrium.
• C)no Nash equilibrium but has a dominant-strategy equilibrium.
• D)neither a Nash equilibrium nor a dominant-strategy equilibrium.

Understand the basic concept of Gross Domestic Product (GDP) and its components.

Comprehend the difference between nominal GDP (GDP) and real GDP.

Learn how to calculate and interpret the GDP deflator as a measure of inflation.

Grasp the significance of per capita GDP in assessing economic welfare.

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