Use the Table Below to Answer the Following Questions

question 22

Multiple Choice

Use the table below to answer the following questions.
Table 15.2.5

-Refer to Table 15.2.5. Two software firms have developed an identical new software application. They are debating whether to give the new application away free and then sell add-ons or sell the application at $30 a copy. The payoff matrix is above and the payoffs are profits in millions of dollars. What is the Nash equilibrium of the game?

• A)Both Firm 1 and 2 will sell the software application at $30 a copy.
• B)Both Firm 1 and 2 will give the software application away free.
• C)Firm 1 will give the application away free and Firm 2 will sell it at $30.
• D)Firm 1 will sell the application for $30 and Firm 2 will give it away.
• E)There is no Nash equilibrium to this game.

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A focused, targetable portion of a market defined by unique preferences or needs that distinguish it from the market at large.

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The degree to which a service meets the customer's expectations and needs, often assessed through dimensions like reliability, responsiveness, assurance, empathy, and tangibles.

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Human Capital

Represents the collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or society.