Use the Following Table to Answer the Question : Table

question 66

Multiple Choice

Use the following table to answer the question : Table 14-2 : represents the payoff matrix of firms A and B,when they choose to produce low or high 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.

-Given the information in Table 14-2,which of the following can be concluded about the strategies of the two firms?

• A)Firm A's dominant strategy is to produce high output,while Firm B's dominant strategy is to produce low output.
• B)Firm A's dominant strategy is to produce low output,while Firm B's dominant strategy is to produce high output.
• C)Firm A's dominant strategy is to produce low output,while Firm B does not have a dominant strategy.
• D)Firm A's dominant strategy is to produce high output,while Firm B does not have a dominant strategy.

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Definitions:

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured or reimburses the insured for expenses incurred from illness or injury.

Performance Compensation

A pay system where employees' remuneration is directly linked to their performance or the outcomes they achieve.

Employees' Control

The extent to which workers have power or influence over their work environment and decision-making processes.

Variable Salary

A compensation structure where a portion of an employee's pay is based on some form of performance measure, leading to fluctuations in earnings.