A Game Has Two Players

question 23

Multiple Choice

A game has two players.Each player has two possible strategies.One strategy is Cooperate, the other is Defect.Each player writes on a piece of paper either a C for cooperate or a D for defect.If both players write C, they each get a payoff of $100.If both players write D, they each get a payoff of 0.If one player writes C and the other player writes D, the cooperating player gets a payoff of S and the defecting player gets a payoff of T.To defect will be a dominant strategy for both players if

• A)S + T > 100.
• B)T > 2S.
• C)S < 0 and T >100.
• D)S < T and T > 100.
• E)S and T are any positive numbers.

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Definitions:

Par Common Stock

The nominal or face value of a share of common stock, as stated in the corporate charter.

Fair Market

The price at which a willing buyer and seller would agree to transact in an open and unrestricted market.

Common Stock

Common stock represents equity ownership in a corporation, where shareholders are entitled to vote on corporate matters and possibly receive dividends.

Reacquired

Refers to previously issued stocks or securities that have been bought back by the issuing company.