Dell and Gateway must decide whether to lower their prices, based on the potential economic profits shown in the payoff matrix above. (The profits are in millions of dollars). In the Nash equilibrium

A) Dell keeps its prices high and Gateway lowers its prices.
B) both Dell and Gateway lower prices.
C) Gateway keeps its prices high and Dell lowers its prices.
D) both Dell and Gateway keep prices high.

B

Economics

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Refer to Figure 3.1. What is the number of outcomes which represent Nash equilibria in this game?

A) 1 B) 2 C) 3 D) 4

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Refer to Table 8-5. The value added by the automobile dealer equals

A) $7,000. B) $15,000. C) $18,000. D) $25,000.

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