The Following Table Shows the Payoff Matrix of the Two

question 52

Multiple Choice

The following table shows the payoff matrix of the two firms (Firm X and Firm Y) , in dollars, when they advertise and when they do not advertise.Table 12.1

-According to Table 12.1, if both the firms follow their dominant strategies,:

• A)firm X earns $100 and firm Y earns $150.
• B)firm X earns $50 and firm Y earns $200.
• C)firm X earns $180 and firm Y earns $150.
• D)firm X earns $180 and firm Y earns $100.
• E)firm X earns $150 and firm Y earns $180.

---

Definitions:

Planning

A phase of the management process whereby objectives are outlined and courses of action determined.

Managerial Accounting

The process of identifying, measuring, analyzing, and communicating financial information to managers for the purpose of achieving organizational goals.

Creativity and Change

The process of implementing new ideas, methods, or innovations to initiate or respond to organizational, environmental, or market shifts.

Planning

The process of setting goals, developing strategies, and outlining tasks and schedules to achieve the objectives set.