The Following Matrix Gives the Payoffs for Firm 1 and Firm

question 19

Multiple Choice

The following matrix gives the payoffs for Firm 1 and Firm 2 from three possible pricing strategies:
Table 10-1
$\begin{array}{l}\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Firm } 2\\\begin{array} { | c | c | c | c | } \hline \text { Firm 1 } & \text { High } & \text { Medium } & \text { Low } \\\hline \text { High } & 5,3 & 7,1 & 6,2 \\\hline \text { Medium } & 2,5 & 5,4 & 2,3 \\\hline \text { Low } & 4,4 & 3,3 & 4,2 \\\hline\end{array}\end{array}$
-Refer to Table 10-1. The payoff table represents a:

• A) prisoner's dilemma.
• B) constant-sum game.
• C) dominant strategy equilibrium.
• D) sequential game.
• E) price war.

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