(Figure: Simultaneous Move Game) in the Figure, the Payoff for the Non-Cooperative

question 29

Multiple Choice

(Figure: Simultaneous Move Game) In the figure, the payoff for the non-cooperative solution is:

• A) $60 for both.
• B) $20 for Gavin and $80 for Grace.
• C) $80 for Gavin and $20 for Grace.
• D) $40 for both.

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Definitions:

Market Price

The market price at which you can currently buy or sell a service or asset.

Efficient Equilibrium

A state in an economy where every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.

External Benefits

Benefits resulting from a transaction that affect parties not directly involved in the transaction, often leading to positive outcomes for society.

External Costs

Costs of a transaction or activity that affect third parties who did not choose to incur that cost, often seen in environmental pollution.