Refer to the Following Game

question 15

Multiple Choice

Refer to the following game. What are the Nash equilibrium strategies for firm A and firm B respectively?

• A) (low price, low price)
• B) (high price, high price)
• C) (low price, high price)
• D) (low price, low price) and (high price, high price)

---

Definitions:

McDonaldization

McDonaldization refers to the process by which the principles of the fast-food industry, including efficiency, calculability, predictability, and control, have come to dominate other sectors of society, economy, and culture.

Monopolistic Competitor

A firm operating in a market structure characterized by many sellers offering differentiated products, which are similar but not perfect substitutes.

Long Run

The Long Run is a period in which all factors of production and costs are variable, allowing all inputs to be adjusted.

Price Discrimination

A pricing tactic in which a provider offers the same or similar services or goods at different price points in various markets.