The Payoff Matrix Below Shows the Payoffs for Firm a and Firm

question 55

Multiple Choice

The payoff matrix below shows the payoffs for Firm A and Firm B,each of whom can either "cooperate" or "cheat." The numbers in parentheses are (payoff for A,payoff for B) .
Firm B
Firm A TABLE 11-2
-Refer to Table 11-2.If x = 40,what is the Nash equilibrium in this game?

• A)(Firm A: cooperate,Firm B: cooperate)
• B)(Firm A: cooperate,Firm B: cheat)
• C)(Firm A: cheat,Firm B: cooperate)
• D)(Firm A: cheat,Firm B: cheat)
• E)there is no Nash equilibrium for this value of x

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