Table 16-2
in the Following Duopoly Game, the Two Firms

question 49

Multiple Choice

Table 16-2
In the following duopoly game, the two firms can either set the price of their product high or low.The game is represented in the table below. $\begin{array}{|c|c|c|c|}\hline&&\text { Firm B }\\&&\text { High Price }&\text { Low Price }\\\hline \text { Firm A }&\text { High Price }&\text { Firm A gets \$1000 } & \text { Firm A get \$1250 } \\&& \text { Firm B gets \$1000 } & \text { Firm B gets \$1100 } \\\hline &\text { Low Price }&\text { Firm A gets \$800 } & \text { Firm A gets \$900 } \\&&\text { Firm B gets \$800 } & \text { Firm B gets \$900 } \\\hline\end{array}$
-Refer to Table 16-2.The Nash equilibrium for this game is for:

• A)both firms to sell the product at a low price
• B)both firms to sell the product at a high price
• C)firm A to sell at a low price and for firm B to sell at a high price
• D)firm A to sell at a high price and for firm B to sell at a low price

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Definitions:

Bad Conditions

Poor or unfavorable situations or environments, often referring to the quality or state of facilities, equipment, or the work environment.

Group Technology

A manufacturing philosophy that focuses on grouping similar parts or processes to take advantage of their similarities in design and production.

Environmental Teams

Groups within an organization dedicated to ensuring that the company’s operations are environmentally sustainable.

Product Design

The process of creating new products or improving existing ones, incorporating functionality, aesthetics, usability, and sustainability considerations.