Indicate whether a statement below is true or false. If false, give an example where the statement does not hold. [Hint: read carefully the slides of Lecture 3 and 4.] (i) A Nash equilibrium maximizes the sum of utilities of the players in every game. (ii) If players are rational and each knows others are rational, a Nash equilibrium will be played. Remember being rational implies a player will never choose a strictly dominated strategy and knowing other players are rational means each player knows others will never choose a strictly dominated strategy. (iii) A Nash equilibrium strategy cannot be weakly dominated. (iv) A Nash equilibrium strategy cannot be strictly dominated. (v) A game can have more than one Nash equilibrium

Garrett is an executive vice president at samm hardware. he researches a proposal by a larger company, maximum hardware, to combine the two companies. by analyzing past performance, conducting focus groups, and interviewing maximum employees, garrett concludes that maximum has poor profit margins, sells shoddy merchandise, and treats customers poorly. what actions should garrett and samm hardware take? a. turn down the acquisition offer and prepare to resist a hostile takeover. b. attempt a friendly merger and use managerial hubris to improve results at maximum. c. welcome the acquisition and use knowledge transfer to impart sam hardware's management practices. d. do nothing; the two companies cannot combine without samm hardware's explicit consent.