Multiple Choice
Refer to the payoff matrix. Bob's Burgers and Sam's Sandwiches are competing restaurants in a small town. Both are considering adding pizza to their line of products. If this is a one-time simultaneous game,
A) both firms have a dominant strategy to add pizza to their menu.
B) both firms have a dominant strategy to not add pizza to their menu.
C) a Nash equilibrium occurs either when both add pizza or both do not add pizza.
D) neither firm has a dominant strategy.
Correct Answer:

Verified
Correct Answer:
Verified
Q218: Potential entry by new firms and competition
Q219: The high concentration ratio for the aluminum
Q220: If the four-firm concentration ratio for industry
Q221: Evaluate the statement: "A market that produces
Q222: In the United States cartels are<br>A)quite common
Q224: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8602/.jpg" alt=" Refer to the
Q225: We would expect a cartel to achieve<br>A)both
Q226: A game has a Nash equilibrium when
Q227: In game theory, a "payoff matrix" is
Q228: Two important characteristics of oligopolists are that