The Game Matrix Shown Displays the Payoffs Associated with Two

question 15

Multiple Choice

The game matrix shown displays the payoffs associated with two firms: Firm 1 and Firm 2. These firms are in an oligopoly and they can choose to produce either a high quantity or a low quantity. What is the Nash Equilibrium for this game?

• A)Both firms choose to produce a high quantity.
• B)Both firms choose to produce a low quantity.
• C)Firm 1 chooses to produce a high quantity and Firm 2 chooses to produce a low quantity.
• D)Firm 1 chooses to produce a low quantity and Firm 2 chooses to produce a high quantity.

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