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Answer the Question Based on the Payoff Matrix for a Duopoly

Question 337

Multiple Choice

  Answer the question based on the payoff matrix for a duopoly in which the numbers indicate the profit from either opening a coffee shop in a small town or not opening the coffee shop. If the firms are playing a sequential game, then A) there is first-mover advantage. B) the firm with the first move will choose not to open a coffee shop. C) the firm with the first move will choose to open a coffee shop. D) both firms will choose not to open a coffee shop, regardless of which firm chooses first. Answer the question based on the payoff matrix for a duopoly in which the numbers indicate the profit from either opening a coffee shop in a small town or not opening the coffee shop. If the firms are playing a sequential game, then


A) there is first-mover advantage.
B) the firm with the first move will choose not to open a coffee shop.
C) the firm with the first move will choose to open a coffee shop.
D) both firms will choose not to open a coffee shop, regardless of which firm chooses first.

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