In a(n) ______ game, one firm moves first, committing to a strategy, and then the rival firm responds.

• A. simultaneous
• B. zero-sum
• C. sequential
• D. cooperative

Answer: (C)

Verified step by step guidance

1. Understand the types of games in game theory: simultaneous games, zero-sum games, cooperative games, and sequential games.
2. Recall that in a simultaneous game, all players choose their strategies at the same time without knowledge of the others' choices.
3. Recognize that a zero-sum game is one where one player's gain is exactly the other player's loss, focusing on payoff structure rather than timing of moves.
4. Know that a cooperative game involves players forming coalitions and making binding agreements.
5. Identify that a sequential game is characterized by one player moving first and committing to a strategy, followed by the other player responding after observing the first player's move.