A Dominant Strategy Is

question 254

Multiple Choice

A dominant strategy is

• A)an equilibrium where each firm chooses the best strategy, given the strategies of other firms.
• B)a strategy chosen by two firms that decide to charge the same price or otherwise not to compete.
• C)a strategy that is obviously the best for each firm that is a party to a business decision.
• D)a strategy that is the best for a firm no matter what strategies other firms use.

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Definitions:

Accounts Payable

Obligations of a business to pay for goods or services that have been delivered but not yet paid for.

Inventory

The total amount of goods and materials a company holds for the purpose of resale or production, including raw materials, work-in-progress, and finished goods.

Profit Margin

A financial ratio that calculates the amount of net income earned with each dollar of sales by dividing net profit by total revenue.

ROE

Return on Equity, which measures a corporation's financial productivity, is computed by dividing the net income by the total equity of shareholders.