Relative to a simultaneous-move situation, the gain to firm R from being able to move first in the game in Scenario 13.14, would be:
A) 40.
B) 37.
C) 32.
D) 5.
E) 3.

Question

Quizplus · Accepted Answer

In Scenario 13.14, if R moves first, it will choose to produce 30 units and earn a profit of 50. If R moves second, J will produce 40 units and R will only be able to produce 20 units and earn a profit of 45. Thus, the gain to firm R from being able to move first is 5 units (50-45).

Relative to a Simultaneous-Move Situation, the Gain to Firm R