The Following Table Shows the Payoffs for Firm 1 and Firm

question 50

Multiple Choice

The following table shows the payoffs for Firm 1 and Firm 2 in a zero-sum game:
Table 10-6
$\begin{array}{c} \quad \quad \quad \text { Firm 2 }\\\begin{array}{ | c | c | c | } \hline \text { Firm 1 } & \text { C1 } & \text { C2 } \\\hline \text { R1 } & 4 & 2 \\\hline \text { R2 } & 0 & 6 \\\hline\end{array}\end{array}$
-Refer to Table 10-6. The equilibrium strategies for Firm 1 and 2 are:.

• A) R1 versus C2.
• B) (.5R1, .5R2) versus (.5C1, .5C2).
• C) (.75R1, .25R2) versus (.5C1, .5C2).
• D) (.5R1, .5R2) versus (.75C1, .25C2).
• E) The game is a constant-sum game.

---

Definitions:

Preferred Stock

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, often receiving dividends before common shareholders.

Right To Vote

The entitlement to participate in making a decision by casting a vote, commonly seen in democratic processes and corporate settings.

Dividends In Arrears

Unpaid dividends on cumulative preferred stock that must be paid out before dividends can be issued to common shareholders.

Dividends In Arrears

Dividends on preferred stock that have not been paid in the period they are due but are still owed to shareholders.