Alice and Betsy Are Playing a Game in Which Each

question 18

Multiple Choice

Alice and Betsy are playing a game in which each can play either of two strategies, leave or stay.If both play the strategy leave, then each gets a payoff of $300.If both play the strategy stay, then each gets a payoff of $600.If one plays stay and the other plays leave, then the one who plays stay gets a payoff of $C and the one who plays leave gets a payoff of $D.When is the outcome where both play leave a Nash equilibrium?

• A)When $300 > C and D > $600 but not when $600 > D
• B)Never, since $600 > $300.
• C)Whenever D < $600.
• D)When D > C and C > $300.
• E)Whenever $300 > C

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Definitions:

Experience

the knowledge or skill acquired by a person through involvement in or exposure to events over time.

Gender

The range of characteristics pertaining to, and differentiating between, masculinity and femininity.

Acceptable Behavior

Actions or conduct considered appropriate, respectable, or within the norms and standards of a particular group, society, or culture.

Real Task

The actual duty or assignment that needs to be accomplished, in contrast to tasks perceived as unnecessary or irrelevant.