Suppose Two Companies, Macrosoft and Apricot, Are Considering Whether to Develop

question 134

Multiple Choice

Suppose two companies, Macrosoft and Apricot, are considering whether to develop a new product, a touch-screen t-shirt. The payoffs to each of developing a touch-screen t-shirt depend upon the actions of the other, as shown in the payoff matrix below (the payoffs are given in millions of dollars) .   
If Macrosoft and Apricot make their decision at the same time, then which of the following statements is correct?

• A)The only Nash equilibrium is that both develop a touch-screen t-shirt.
• B)The only Nash equilibrium is that neither develops a touch-screen t-shirt.
• C)The game does not have a Nash equilibrium.
• D)The game has more than one Nash equilibrium.

---

Definitions:

Superficial

Located near the surface of the body or an organ.

Pulse Pressure

The difference between systolic and diastolic blood pressure readings, reflecting the force that the heart generates each time it contracts.

Arterial Pressure

The pressure of the blood within the arteries, typically reflecting the force exerted by the heart when pumping blood through the arterial system.

Systolic Pressure

The top number in a blood pressure reading, representing the maximum pressure your heart exerts while beating.