A feasible strategy set is:
A) all actions with a nonzero probability of occurring.
B) only actions that have a 50% or greater probability of occurring.
C) actions that result in positive profits for the firm.
D) actions that a decision maker is willing to take.
E) the one outcome that the decision maker chooses.

Question

Quizplus · Accepted Answer

A feasible strategy set should include all actions that have a nonzero probability of occurring. This allows for a full range of options and flexibility in decision making. Excluding certain actions with lower probabilities may constrain the firm's potential profits or limit their ability to respond to unexpected events.

A Feasible Strategy Set Is