The two largest auto manufacturers, Toyota and GM, have experimented with hydrogen powered cars in the past, and they are currently considering the decision to introduce a hydrogen powered car into the commercial automobile market
The payoffs from the possible actions are measured in millions of dollars per year, and the possible outcomes are summarized in the following game matrix: GM produces GM does not produce Toyota produces -10, -10 50, 0 Toyota does not produce 0, 40 0, 0 If both firms enter the market simultaneously, what is the Nash equilibrium? A) Toyota produces and GM does not produce.
B) GM produces and Toyota does not produce.
C) There are two Nash equilibria - GM produces and Toyota does not produce, or Toyota produces and GM does not produce.
D) There is no Nash equilibrium in this game.
C
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What is the significance of the multiplier? What causes the multiplier to be larger or smaller?
What will be an ideal response?
The bowed shape of the traditional production possibilities curve reflects the
A) negative side effects of economic growth. B) fact that not all resources are equally well-suited to producing all goods. C) costs of unemployment. D) problems of inequality.