Consider the Following Partial-Conflict Game Played in a Noncooperative Manner $\quad$

question 70

Multiple Choice

Consider the following partial-conflict game played in a noncooperative manner. The first payoff is to player I; the second is to player II. $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Player II }$
$\begin{array}{lcc}\text { Player I } & \text { Choice A } & \text { Choice B } \\\text { Choice A } & (4,4) & (3,5) \\\text { Choice B } & (5,3) & (2,2) \end{array}$
What outcomes constitute a Nash equilibrium?

• A) I and II select A.
• B) I and II select B.
• C) both (A) and (B)
• D) neither (A) nor (B)

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Definitions:

Output

The amount of goods or services produced by a person, machine, factory, or entire economy in a certain period.

Returns To Scale

A concept in economics that describes how the output of a production process changes as the scale of production inputs changes.

Production Function

A mathematical model that describes the relationship between inputs used in production and the resultant output.

Isoquant

An isoquant is a curve depicting all combinations of inputs which produce the same level of output, used in the study of production theory.