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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Definitions:

Exhaustion stage

The final phase in the general adaptation syndrome, marked by the body's inability to continue adaptation to stress, leading to potential burnout or health issues.

Maladaptive

Behaviors or thought patterns that inhibit an individual's ability to adjust healthily to particular situations.

Right from wrong

The moral ability or capacity to distinguish ethical actions from unethical ones.

Self-efficacy

An individual's belief in their own ability to complete tasks and achieve goals.