Refer to the above table. If both firms choose their strategies simultaneously, then
Answer the question based on the following payoff matrix for a duopoly in which the numbers indicate the profit from either opening a coffee shop in a small town or not opening the coffee shop.
A. There is no Nash equilibrium for this game.
B. Firm A's dominant strategy is to open a coffee shop.
C. Firm B's dominant strategy is to not open a coffee shop.
D. Both firms have a dominant strategy to not open a coffee shop.
A. There is no Nash equilibrium for this game.
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Assume a monopolist's marginal cost and marginal revenue curves intersect and the demand curve passes above its average total cost curve. The firm will:
a. make an economic profit. b. stay in operation in the short run, but shut down in the long run. c. shut down in the short run. d. lower the price.
When income taxes are included in the basic macroeconomic model, the value of the
a. inflationary effect is increased. b. multiplier is increased. c. multiplier is decreased. d. expenditure function is increased.