Refer to the Accompanying Payoff Matrix

question 12

Multiple Choice

Refer to the accompanying payoff matrix.Which of the following is a Nash equilibrium?

• A) Company A chooses Strategy 1 and Company B chooses Strategy 1.
• B) Company A chooses Strategy 1 and Company B chooses Strategy 2.
• C) Company A chooses Strategy 2 and Company B chooses Strategy 2.
• D) Company A chooses Strategy 2 and Company B chooses Strategy 1.
• E) None of the above.

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Definitions:

International Treaties

Formal agreements between countries or sovereign states that are recognized by international law, covering a wide range of subjects such as human rights, trade, and environmental protection.

Biological Diversity

The variability among living organisms from all sources including terrestrial, marine, and other aquatic ecosystems and the ecological complexes of which they are part; essentially another term for biodiversity.

Endangered Species

Species that are at risk of extinction due to a rapid decline in population or habitat, often caused by human activities.

Vital Ecosystems

Importantly diverse and productive ecological systems that are crucial for the sustainability of life and the ecological balance on Earth.