-The Only Two Firms in a Market Are Trying to Decide

question 94

Multiple Choice

-The only two firms in a market are trying to decide what price to charge.The payoff matrix for this duopoly game is shown above.The payoffs are thousands of dollars of economic profit.In the above game,in the Nash equilibrium,

• A) Firm A and Firm B are both making $40,000 in economic profit.
• B) Firm A and Firm B are both making $55,000 in economic profit.
• C) Firm A is making $60,000 and Firm B is making $55,000 in economic profit.
• D) Firm A and Firm B are both making $60,000 in economic profit.
• E) Firm A and Firm B are both making $35,000 in economic profit.

---

Definitions:

Asset Utilization

The degree to which a company or an organization makes effective use of its assets in generating revenue or achieving its objectives.

Channel-Spanning Performance Measures

Metrics that evaluate the effectiveness and efficiency of a company across multiple distribution channels or stages of the supply chain.

Reverse Flows

Processes involved in the return or recycling of products and materials from the consumer or final user back to the originating company or to a third-party for disposal or re-use.

Workforce Issues

Refers to challenges and matters concerning the labor force of an organization, including recruitment, training, retention, and employment laws.