Refer to the Information Provided in Table 14 -Refer to Table 14

question 6

Multiple Choice

Refer to the information provided in Table 14.1 below to answer the question that follows.
Table 14.1
B's Strategy
$\begin{array}{c}\begin{array}{lll}\\\hline\\\\\text { A's Strategy }\\\\\\ \end{array}\begin{array}{lll}\text { Raise Price }\\\hline \text {Raise A's profit \( \$ 3,000 \) }\\ \text {Price B's profit \( \$ 3,000 \) }\\\\ \text {Don't A's profit \( \$ 15,000 \) }\\ \text {Raise \( B^{\prime} \) s profit \( \$ 10,000 \) } \end{array}\begin{array}{lll}\text { Don't Raise Price}\\\hline\text { A's profit \( \$ 10,000 \) }\\\text { B's profit \( \$ 15,000 \) }\\\\\text { A's profit \( \$ 5,000 \) }\\\text { B's profit \( \$ 5,000 \) } \end{array}\end{array}$

-Refer to Table 14.1. If both firms follow a maximin strategy, the equilibrium in the game is

• A) (Raise Price, Don't Raise Price).
• B) (Raise Price, Raise Price).
• C) (Don't Raise Price, Raise Price).
• D) (Don't Raise Price, Don't Raise Price).

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Definitions:

Prices

The amount of money required to purchase a good or service, determined by factors like supply and demand, production costs, and competition.

Aggregate Demand

The total demand for all goods and services within an economy at various price levels, in a given time period.

Consumer Demand

The desire of individuals or households to purchase goods and services at certain prices.

Investment Goods

Goods that are purchased not for immediate consumption but for producing other goods or services in the future.