The Following Table Lists the Payoffs of Two Firms Adopting

question 14

Multiple Choice

The following table lists the payoffs of two firms adopting three possible advertising strategies:
Table 10-5
$\begin{array}{l}\quad\quad\quad\quad\quad\quad\quad\quad\text { Firm } 2\\\begin{array} { | c | c | c | c | } \hline \text { Firm 1 } & \text { High } & \text { Medium } & \text { Low } \\\hline \text { High } & 3,2 & 4,1 & 5,0 \\\hline \text { Medium } & 1,6 & 5,4 & 3,3 \\\hline \text { Low } & 0,4 & 5,5 & 6,2 \\\hline\end{array}\end{array}$
-Refer to Table 10-5. The (Nash) equilibrium pair of strategies for Firms 1 and 2 is:

• A) Low advertising versus high advertising.
• B) High advertising for both firms.
• C) Medium advertising versus low advertising.
• D) High advertising versus low advertising.
• E) Medium advertising for both firms.

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Definitions:

Organizational Politics

The actions and conduct engaged by people in a work environment to obtain authority, sway decision-making, and realize individual or collective ambitions.

Potentially Functional

Describes something that may serve a purpose or be useful in some way, though it may not currently be in operation or use.

Dysfunctional

Behaviors or characteristics that negatively impact the functioning of an individual, group, or organization, often leading to decreased performance or well-being.

Behaviours

Actions or reactions of individuals, often in response to external stimuli, that can be observed and measured.