​Use the Following Case from Question

question 77

Multiple Choice

​Use the following case from question
Two street racers are playing a simultaneous game of chicken.They have to race towards each other and whoever swerves first is chicken and faces shame,a loss of 8,while the winner enjoys a gain of 3.If neither stop,they would crash into each other,a loss of 10.If both of them swerve at the same time,they are both chicken and face a loss of 5 each
-​If player B destroys his own brakes before the race,and player A sees that ,what would the new Nash equilibrium be in this case?

• A)​Player A stops,Player B does not
• B)Player B stops,Player A does not
• C)Both players stop
• D)​Neither players stop

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Definitions:

Trade

The action of buying, selling, or exchanging goods and services between people or countries.

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Insulated containers used to keep drinks and food cool.

Radios

Radios are devices that receive broadcast signals, converting them into audio sound waves for information and entertainment.

Opportunity Cost

Opportunity cost is the value of the next best alternative forgone as the result of making a decision.