Product differentiation plays an important role in perfect competition.
Indicate whether the statement is true or false
Question 2
Assume that the characteristic function of a coalition between three individuals named 1,2, and 3 is V(1,2,3) = 60; while V(1) = 20, V(2) = 16, and V(3) = 10, where V(i) is the value created by individual i. Which of the following allocations will lie within the core?
a. Payoffs to individuals 1,2, and 3 are 19, 35, and 6 respectively.
b. Payoffs to individuals 1,2, and 3 are 30, 18, and 12 respectively.
c. Payoffs to individuals 1,2, and 3 are 32, 20, and 8 respectively.
d. Payoffs to individuals 1,2, and 3 are 28, 15, and 17 respectively.
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