Refer to Scenario 13.16. If Gooi can move first, and Ici wants to ...

[madam-professor]

Refer to Scenario 13.16. If Gooi can move first, and Ici wants to realize the (150, 300 ) payoff,
 
  A) all it has to do is threaten to buy yogurt machines, no matter what Gooi does.
  B) it could make its threat credible by rearranging its physical plant so that the installation of gelato machines by Gooi would bring in profit less than 50.
  C) it could make its threat credible by rearranging its physical plant so that the installation of gelato machines by Gooi would bring in profit less than 150.
  D) it could make its threat credible by rearranging its physical plant so that the installation of gelato machines by Gooi would bring in profit less than 300.
  E) it has to move before Gooi; there is no other way.

Question 2

The distinction between income and needs of the working poor is not vital for policy concerns.
 
  Indicate whether the statement is true or false

[Ksh22]

Answer to Question 1

B

Answer to Question 2

F