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

question 61

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) . $$\begin{array}{l}\begin{array} { | l | l | l | l | } \hline & & \text { Firm B } & \\\hline & & \text { Cooper ate } & \text { Cheat } \\\hline \text { Firm A } & \text { Cooperate } & ( 30,30 ) & ( 10 , x ) \\\hline & \text { Cheat } & ( x , 10 ) & ( 20,20 ) \\\hline\end{array}\\\text { TABLE 11- } 2\end{array}$$
-Refer to Table 11- 2. Of the choices provided below, what is the minimum value for x in order for both firms' cheating to be a Nash equilibrium?

• A) 25
• B) 80
• C) 70
• D) 60
• E) 40

---

Definitions:

Legal References

Legal references are citations or sources that provide authority or support for statements or arguments in legal documents and proceedings.

Case Citator

A research tool that provides references to where a particular legal case has been cited in other legal documents or cases.

Westlaw

An online legal research service and proprietary database for lawyers and legal professionals to find and research legal materials.

Lexis

A database primarily used in legal research that provides access to a vast collection of legal resources, case law, and statutes.