-The Only Two Firms in a Market Are Trying to Decide

question 94

Multiple Choice

-The only two firms in a market are trying to decide what price to charge.The payoff matrix for this duopoly game is shown above.The payoffs are thousands of dollars of economic profit.In the above game,in the Nash equilibrium,

• A) Firm A and Firm B are both making $40,000 in economic profit.
• B) Firm A and Firm B are both making $55,000 in economic profit.
• C) Firm A is making $60,000 and Firm B is making $55,000 in economic profit.
• D) Firm A and Firm B are both making $60,000 in economic profit.
• E) Firm A and Firm B are both making $35,000 in economic profit.

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Definitions:

Warranty of Title

A guarantee provided by a seller to a buyer that the seller has the right to sell the property and that there are no undisclosed liens, claims, or encumbrances against it.

Good and Valid

A legal term indicating that a document, agreement, or transaction is legally sound and effectively in place.

Inconsistent Warranties

Warranties that offer conflicting guarantees or statements about a product, leading to confusion about coverage.

Render Invalid

To make something null and void or to deprive it of legal force.