Refer to the below table. When this game reaches a Nash equilibrium, the payoffs will be
Answer the question based on the following payoff matrix for a duopoly in which the numbers indicate the profit from following either an international strategy or a national strategy.
A. $3M for both firms.
B. $17M for both firms.
C. $15 for firm A and $5 for firm B.
D. $5 for firm A and $15 for firm B.
B. $17M for both firms.
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Households will choose to save more if
A) income is expected to decrease in the future. B) current disposable income increases. C) Both answers A and B are correct. D) Neither answer A nor B is correct.
Max Shreck, an accountant, quit his $80,000-a-year job and bought an existing tattoo parlor from its previous owner, Sylvia Sidney. The lease has five years remaining and requires a monthly payment of $4,000
Max's explicit cost amounts to $3,000 per month more than his revenue. Should Max continue operating his business? A) If Max's marginal revenue is greater than or equal to his marginal cost, then he should stay in business. B) Max should continue to run the tattoo parlor until his lease runs out. C) Max's explicit cost exceeds his total revenue. He should shut down his tattoo parlor. D) This cannot be determined without information on his revenue.