What is true about the following payoff matrix? \[\begin{array} { | l | l | c | } \hline & { \text { A: not cooperate } } & \text { A: cooperate } \\ \hline \text { B: do not cooperate } & \text { A: } 2 , \text { B: } 2 & \text { A: } 1 , \text { B: } 3 \\ \hline \text { B: cooperate } & \text { A: } 3 , \text { B: } 1 & \text { A: } 0 , B : 0 \\ \hline \end{array}\]

A) Only player A has a dominant strategy. B) Only player B has a dominant strategy. C) Both player A and player B have dominant strategies. D) Neither player A nor player B has a dominant strategy. A) Only player A has a dominant strategy. B) Only player B has a dominant strategy. C) Both player A and player B have dominant strategies. D) Neither player A nor player B has a dominant strategy.

Consider the following payoff matrix facing Harry and Sally when each chooses to go to the coffee shop listed. Both Harry and Sally would like to meet each other but are shy about asking the other out on a date. \(\begin{array}{|l|l|l|l|} \hline &&\text { Harry }\\ \hline && \text { Starbucks } & \text { Dunkin Donuts } \\ \hline \text { Sally }&\text { Starbucks } & \text { H: } 1, \mathrm{~S}: 1 & \text { H: } 0, \mathrm{~S}: 0 \\ \hline &\text { Dunkin Donuts } &\mathrm{H}: 0, \mathrm{~S}: 0 & \mathrm{H}: 1, \mathrm{~S}: 1 \\ \hline \end{array}\) What is Harry's best strategy?

A) Harry has no best strategy. B) Go to Dunkin' Donuts. C) Go to Starbucks. D) Stay at home. A) Harry has no best strategy. B) Go to Dunkin' Donuts. C) Go to Starbucks. D) Stay at home.

Consider the following payoff matrix facing Harry and Sally when each chooses to go to the coffee shop listed. Both Harry and Sally would like to meet each other but are shy about asking the other out on a date. \(\begin{array}{|l|l|l|l|} \hline &&\text { Harry }\\ \hline && \text { Starbucks } & \text { Dunkin Donuts } \\ \hline \text { Sally }&\text { Starbucks } & \text { H: } 1, \mathrm{~S}: 1 & \text { H: } 0, \mathrm{~S}: 0 \\ \hline &\text { Dunkin Donuts } &\mathrm{H}: 0, \mathrm{~S}: 0 & \mathrm{H}: 1, \mathrm{~S}: 1 \\ \hline \end{array}\) If Harry and Sally go to the coffee shop every day, what is Harry's best strategy?

A) Harry has no best strategy. B) Choose one shop to go to and keep going to it. C) Randomly choose between the two shops and hope Sally will end up there too. D) Stay at home. A) Harry has no best strategy. B) Choose one shop to go to and keep going to it. C) Randomly choose between the two shops and hope Sally will end up there too. D) Stay at home.

If individuals can credibly cooperate and split the gains, which payoff is the most likely? \[\begin{array} { | l | l | l | } \hline & \text { A: Not Cheat } & \text { A: Cheat } \\ \hline \text { B: Not Cheat } & \text { A: } 1 , \text { B: } 50 & \text { A: } 1 , \text { B: } 1 \\ \hline \text { B: Cheat } & \text { A: } 2 , \text { B: } 1 & \text { A: } 5 , \text { B: } 5 \\ \hline \end{array}\]

A) 1, 11 B) 1, 1 C) 2, 1 D) 5, 5 A) 1, 11 B) 1, 1 C) 2, 1 D) 5, 5

Consider the following payoff matrix facing Harry and Sally when each chooses to go to the coffee shop listed. Harry wants to avoid Sally at the coffee shop and is not happy when Sally ends up in the same shop he chooses. Sally would like to see Harry, and so she is not happy when Harry ends up in a different coffee shop. \(\begin{array}{|l|l|l|l|} \hline &&\text { Harry }\\ \hline && \text { Starbucks } & \text { Dunkin Donuts } \\ \hline \text { Sally }&\text { Starbucks } & \text { H: }-1, \mathrm{~S}: 1 & \mathrm{H}: 1, \mathrm{~S}:-1 \\ \hline &\text { Dunkin Donuts } & \mathrm{H}: 1, \mathrm{~S}:-1 & \mathrm{H}:-1, \mathrm{~S}: 1 \\ \hline \end{array}\) Assuming that Sally and Harry go to the coffee shop each day, what is Harry's best strategy?

A) Go to Starbucks because Sally won't go there. B) Go to Dunkin' Donuts because Sally won't go there. C) Go to Starbucks one day and Dunkin' Donuts the next and maintain that pattern. D) Randomly choose between going to Starbucks and going to Dunkin' Donuts. A) Go to Starbucks because Sally won't go there. B) Go to Dunkin' Donuts because Sally won't go there. C) Go to Starbucks one day and Dunkin' Donuts the next and maintain that pattern. D) Randomly choose between going to Starbucks and going to Dunkin' Donuts.

Consider the following payoff matrix facing two firms selling the same product in the same market. They must choose whether to price the good at a high or low price. \[\begin{array} { c } \quad \quad \quad \quad \quad \quad \quad { \text { COMPANY B } } \\ \begin{array} { | l | l | c | c | } \hline & & \text { Low Price } & \text { High Price } \\ \hline \text { COMPANY A } & \text { Low Price } & \text { A: } 2 , \text { B: } 2 & \text { A: } 4 , \text { B: } 1 \\ \hline & \text { High Price } & \text { A: } 1 , \text { B: } 3 & \text { A: } 6 , \text { B: } 2 \\ \hline \end{array}\end{array}\] Given this information:

A) A has a dominant strategy but B does not. B) B has a dominant strategy but A does not. C) both A and B have dominant strategies. D) neither A nor B has a dominant strategy. A) A has a dominant strategy but B does not. B) B has a dominant strategy but A does not. C) both A and B have dominant strategies. D) neither A nor B has a dominant strategy.