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d. This is a positive-sum game because the sum of the payoffs for each firm is p

ID: 1254634 • Letter: D

Question

d. This is a positive-sum game because the sum of the payoffs for each firm is positive.

2. What is the dominant strategy in this game?

d. The dominant strategy is for Uptown to use a high-price strategy and RareAir to use a low-price strategy.

3. What cell represents a Nash equilibrium?

a. This is a zero-sum game because there is zero net gain for the two firms. 1. Is the game shown by the figure below a zero-sum game or is it a positive-sum game? a. This is a zero-sum game because there is zero net gain for the two firms. b. This is a zero-sum game because the sum of the payoffs for each firm is positive. c. This is a positive-sum game because the sum of the payoffs for each firm is zero. d. This is a positive-sum game because the sum of the payoffs for each firm is positive. 2. What is the dominant strategy in this game? a. The dominant strategy is for Uptown to use a low-price strategy and RareAir to use a high-price strategy. b. The dominant strategy is for both firms to use a low-price strategy. c. The dominant strategy is for both firms to use a high-price strategy. d. The dominant strategy is for Uptown to use a high-price strategy and RareAir to use a low-price strategy. 3. What cell represents a Nash equilibrium?

Explanation / Answer

First question is A second question is B third question is cell D