The Following Table Depicts Two Firms in a Single-Stage Duopoly

question 86

Multiple Choice

The following table depicts two firms in a single-stage duopoly game.Each firm makes its decision without knowledge of the other firm's decision.The payoffs for each firm represent economic profits,and each firm strictly prefers more economic profit than less.If X is greater than $3,500,then there is/are

• A) only one Nash equilibrium,and this game would be considered a prisoner's dilemma.
• B) two Nash equilibriums,and this game would be considered a prisoner's dilemma.
• C) three Nash equilibriums,and this game would be considered a prisoner's dilemma.
• D) only one Nash equilibrium,and this game would not be considered a prisoner's dilemma.
• E) two Nash equilibriums,and this game would not be considered a prisoner's dilemma.

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Definitions:

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