Which of the Following Choices Is Not True About Decision

question 28

Multiple Choice

Which of the following choices is not true about decision theory?

• A)Decision alternatives for one person can be states of nature for another.
• B)Payoffs are always positive or zero.
• C)If you play a card game at a casino, the cards you are dealt are states of nature.
• D)If you decide to take a MOOC (massive open online course), how much you learn is a payoff.
• E)In a two-person interaction, it is possible that the sum of the two payoffs is positive.

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Definitions:

Patent

Legal right granted by a government to an inventor, allowing them to exclude others from making, using, or selling their invention for a certain period of time.

Trademark

A legal designation that protects the exclusive use of a brand or product name.

Goodwill

The intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets.

Straight-Line Method

A method of calculating depreciation of an asset by evenly spreading the cost over its useful life.