​Use the Following to Answer Question

question 82

Multiple Choice

​Use the following to answer question
Consider the following information for a simultaneous move game:  If you charge a low price (LP) and your rival charges a LP,you each earn $5 million in profits.  If both charge a high price (HP) ,each will each earn $10 million in profits.  However,if one charge a LP and the other does not,the firm that charges a LP will earn $15 million and the other firm will earn $1 million.
-​If the game continues for infinity,then the new Nash Equilibrium is

• A)​for one firm to charge a HP forever.
• B)for your firm charge a LP when the other firm does.
• C)for each firm to charge HP so long as the rival does,otherwise charge a LP.
• D)​for each firm to charge LP until the rival does,and then to charge a HP forever.

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Definitions:

Schizophrenic Disorders

A group of severe mental health conditions marked by disconnection from reality, often involving delusions and hallucinations.

Delusions

False beliefs held with strong conviction, despite superior evidence to the contrary, often found in psychological disorders such as schizophrenia.

Adaptive Behaviour

The ability of an individual to adjust and manage themselves in their social environment, crucial for psychological and social development.

Hallucinations

Perceptions in a conscious and awake state in the absence of external stimuli that have qualities of real perception.