In the Following Two-Person Zero-Sum Game, the Payoffs Represent Gains $\left[ \begin{array} { l l } 5 & 2 \\2 & 1\end{array} \right]$

question 23

Multiple Choice

In the following two-person zero-sum game, the payoffs represent gains to the row player I and losses to the column player II. Which of the following statements is true?
$\left[ \begin{array} { l l } 5 & 2 \\2 & 1\end{array} \right]$

• A) The maximin strategy of player I is to always play the first row; the minimax strategy of player II is to always play the first column.
• B) The maximin strategy of player I is to always play the second row; the minimax strategy of player II is to always play the first column.
• C) The maximin strategy of player I is to always play the first row; the minimax strategy of player II is to always play the second column.
• D) The maximin strategy of player I is to always play the second row; the minimax strategy of player II is to always play the second column.

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Definitions:

Recession

A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in successive quarters.

Investment Goods

Products purchased for future production or used to produce other goods, rather than being consumed by the buyer.

Time Inconsistency

The tendency for preferences or decisions to change over time in a way that a person's earlier preferences or decisions become inconsistent with their later ones.

Inflationary

Pertaining to or characterized by inflation, a scenario in which the general price level of goods and services rises, eroding purchasing power.