Long-run prospects


Circle or state the outcome you expect. (10 points) If both Ace and Zenith consider the expected present values of the outcomes, Ace has an overwhelming incentive to defect (EPV of $110 when, as is logical, Zenith also defects) and thus keep the game going for sure And given that Ace defects at first, Zenith should also defect. D) In your opinion, what are the long-run prospects for this industry?

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Business Management: Long-run prospects
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