The following payoff matrix describes a duopoly. Firm A chooses a row and Firm B chooses a column; each cell gives payoffs in the order (A, B). Which statements are true?Firm A / Firm B Advertise Do not advertise Advertise (11, 6) (16, 0) Do not advertise (7, 9) (20, 2)
(a) Firm A has no dominant strategy.
(b) Firm B has a dominant strategy.
(c) The game has a Nash equilibrium.
(d) Neither firm has a dominant strategy. Choose the correct code:
(a), (b) and (c)
If B advertises, A prefers advertising (11 > 7); if B does not, A prefers not advertising (20 > 16). Thus A has no dominant strategy. B always prefers advertising (6 > 0 and 9 > 2). Both advertising is the Nash equilibrium, with payoffs (11, 6), so (a), (b) and (c) are true.
Important Questions from Economy
- At the time of independence, which sector contributed the largest share to India's national income?
- Which of the following is an example of soft infrastructure?
- Which of the following statements regarding the estimation of India's national and per capita income during the colonial rule is correct?
What was one of the major characteristics of India's economy at the time of independence in 1947?
- The Fiscal Responsibility and Budget Management (FRBM) Act set limits on the fiscal deficit and public debt. What was the fiscal deficit target under the original FRBM Act by 2008-09?
