Refer to Table 14-4. Does Alistair have a dominant strategy and if so, what is it?
A) There are two dominant strategies: if Baine increases its advertising budget, then Alistair's best bet is to keep its budget the same but if Baine does not increase its budget then Alistair should raise its advertising budget.
B) Yes, Alistair should increase its advertising budget.
C) Yes, Alistair should keep its advertising budget as is.
D) No, there is no dominant strategy.
Question 2
Major League Baseball teams are similar to other firms in that they use factors of production to produce a product (baseball games). An example of capital used by teams to produce their products is
A) the ballparks where the games are played.
B) the labor of baseball players.
C) the money teams earn from television contracts and ticket sales.
D) the land on which baseball games are played.
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