Use the following to answer question:
Table 12.21
-(Table 12.21) Payoffs represent profits in millions of dollars. Which of the following statements is (are) TRUE?
A) I, II, and III
B) II and III
C) I and III
D) I

Question

Use the following to answer question:
Table 12.21 
-(Table 12.21) Payoffs represent profits in millions of dollars. Which of the following statements is (are) TRUE? 
A) I, II, and III 
B) II and III 
C) I and III 
D) I

Quizplus · Accepted Answer

From Table 12.21, we can see that:
I) Company A will earn a profit of $20 million in strategy A, and a profit of $10 million in strategy B. Hence, I is true.
II) Company B will earn a profit of $25 million in strategy A, and a profit of $20 million in strategy B. Hence, II is not true.
III) Company C will earn a profit of $30 million in strategy A, and a profit of $35 million in strategy B. Hence, III is true.

Therefore, the only choice that is true is C (I and III).

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