When a Game Has Multiple Equilibria,a Useful Method to Sort

question 2

Multiple Choice

When a game has multiple equilibria,a useful method to sort out which one would be the "best" prediction is to

• A)find the one (if any) in which both players are better off than in any other equilibrium.
• B)find the equilibrium that is symmetric,if any.
• C)find the one which seems "focal",if any.
• D)all of the above.

---

Definitions:

Inventory Records

Documentation of the quantities, locations, and statuses of products or materials that a company holds in stock.

Inventory Turnover

Cost of goods sold divided by average inventory.

Safety Stock

Inventory kept on hand as a buffer against supply or demand uncertainties, ensuring that stockout situations are minimized.

Holding Costs

The expenses associated with storing unsold goods or materials, including storage, insurance, and opportunity costs.