-The Above Figure Shows the Payoff Matrix for Two Firms,A

question 32

Multiple Choice

-The above figure shows the payoff matrix for two firms,A and B,choosing to produce a basic computer or an advanced computer.Now the payoff of the firm who produces a basic computer falls to 10 if the other firm chooses to produce an advanced computer.Then

• A)both firms will have dominant strategies.
• B)Nash equilibria will not change.
• C)joint profits will be maximized at the Nash equilibrium.
• D)Firm A and firm B will choose different actions.

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