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Unit 2D Quiz 2

Unit 2D Quiz 2

Q Question 1 1 / 1 pts Table 17-20 Nadia and Maddie are two college roommates who both prefer a clean common space in their dorm room, but neither enjoys cleaning. The roommates must each make a decision to either clean or not clean the dorm room's common space. The payoff table for this situation is provided below, where the higher a player’s payoff number, the better off that player is. The payoffs in each cell are shown as (payoff for Nadia, payoff for Maddie). Maddie Clean Don’t Clean Nadia Clean (30, 30) (7, 50) Don’t Clean (50, 7) (10, 10) Refer to Table 17-20. If Maddie chooses to clean, then Nadia will Question 2 1 / 1 pts Scenario 17-3. Consider two countries, Muria and Zenya, that are engaged in an arms race. Each country must decide whether to build new weapons or to disarm existing weapons. Each country prefers to have more arms than the other because a large arsenal gives it more influence in world affairs. But each country also prefers to live in a world safe from the other country's weapons. The following table shows the possible outcomes for each decision combination. The numbers in each cell represent the country’s ranking of the outcome (4 = best outcome, 1 = worst outcome). Zenya Build new weapons Disarm existing weapons Muria Build new weapons Muria: 2 Zenya: 2 Muria: 4 Zenya: 1 Disarm existing weapons Muria: 1 Zenya: 4 Muria: 3 Zenya: 3 Refer to Scenario 17-3. If Zenya chooses to disarm its existing weapons, then Muria will Question 3 1 / 1 pts Table 17-20 Nadia and Maddie are two college roommates who both prefer a clean common space in their dorm room, but neither enjoys cleaning. The roommates must each make a decision to either clean or not clean the dorm room's common space. The payoff table for this situation is provided below, where the higher a player’s payoff number, the better off that player is. The payoffs in each cell are shown as (payoff for Nadia, payoff for Maddie). Maddie Clean Don’t Clean Nadia Clean (30, 30) (7, 50) Don’t Clean (50, 7) (10, 10) Refer to Table 17-20. If Nadia chooses to clean, then Maddie will Question 4 1 / 1 pts Table 17-20 Nadia and Maddie are two college roommates who both prefer a clean common space in their dorm room, but neither enjoys cleaning. The roommates must each make a decision to either clean or not clean the dorm room's common space. The payoff table for this situation is provided below, where the higher a player’s payoff number, the better off that player is. The payoffs in each cell are shown as (payoff for Nadia, payoff for Maddie). Maddie Clean Don’t Clean Nadia Clean (30, 30) (7, 50) Don’t Clean (50, 7) (10, 10) Refer to Table 17-20. What is Nadia's dominant strategy? Question 5 1 / 1 pts Table 17-13 Two home-improvement stores (Lopes and HomeMax) in a growing urban area are interested in expanding their market share. Both are interested in expanding the size of their store and parking lot to accommodate potential growth in their customer base. The following game depicts the strategic outcomes that result from the game. Increases in annual profits of the two home-improvement stores are shown in the table below. Lopes Increase the size of store and parking lot Do not increase the size of store and parking lot HomeMax Increase the size of store and parking lot Lopes = $1.0 million HomeMax = $1.5 million Lopes = $0.4 million HomeMax = $3.4 million Do not increase the size of store and parking lot Lopes = $3.2 million HomeMax = $0.6 million Lopes = $2.00 million HomeMax = $2.5 million Refer to Table 17-13. If both stores follow a dominant strategy, HomeMax's annual profit will grow by

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1 not clean and Maddie’s payoff will be 7. 2 build new weapons in order to increase its influence in world affairs.