Use the Following to Answer Questions

question 81

Multiple Choice

Use the following to answer questions :
Scenario: Payoff Matrix for Firms X and Y
The following payoff matrix depicts the profits for the only two firms in this oligopolistic industry.
-(Scenario: Payoff Matrix for Firms X and Y) Payoff Matrix for Firms X and Y.If firm X and firm Y wish to maximize joint profits:

• A) each firm should choose its dominant strategy.
• B) firm Y should choose a dominant strategy and firm X should choose a nondominant strategy.
• C) each should consider its specific situation before choosing a strategy since strategies also entail costs.
• D) each should choose a nondominant strategy.

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Definitions:

Carrier's Decisions

The choices made by transportation companies regarding route selection, pricing, service levels, and capacity management.

Market

An economic place or environment where buyers and sellers come together to exchange goods, services, or information.

Responsiveness

The ability of a company or system to quickly react to changes in demand, customer needs, or market conditions.

Vehicle-Related Cost

Expenses associated with owning and operating a vehicle, including fuel, maintenance, insurance, and depreciation.