The Following Table Shows the Payoff Matrix of the Two

question 53

Multiple Choice

The following table shows the payoff matrix of the two firms (Firm X and Firm Y) in dollars when they advertise and when they do not advertise. Table 25.1 According to Table 25.1, if both the firms follow their dominant strategies:

• A)firm X earns $100 and firm Y earns $150.
• B)firm X earns $50and firm Y earns $200.
• C)firm X earns $180 and firm Y earns $150.
• D)firm X earns $180 and firm Y earns $100.
• E)firm X earns $150 and firm Y earns $180.

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Definitions:

Mesophyll

The inner tissue of a leaf, containing many chloroplasts where photosynthesis occurs.

Photosynthesis

The process by which green plants and some other organisms use sunlight to synthesize foods from carbon dioxide and water, generating oxygen as a byproduct.

Carbon Dioxide

This gas, which has no color and no smell, is generated when carbon and organic substances burn and through the act of respiration. It is a natural component of the air and is utilized by plants for photosynthesis.

Sugar

A sweet-flavored substance derived from various plants, primarily sugar cane and sugar beet, consisting chiefly of sucrose, and used as a sweetener in food and drink.