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Suppose Firm a and Firm B Are Considering Whether to Invest

question 63

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Suppose Firm A and Firm B are considering whether to invest in a new production technology. For each firm, the payoff to investing (given in thousands of dollars per day) depends upon whether the other firm invests, as shown in the payoff matrix below.  
Suppose Firm A and Firm B are considering whether to invest in a new production technology. For each firm, the payoff to investing (given in thousands of dollars per day) depends upon whether the other firm invests, as shown in the payoff matrix below.       What is the Nash equilibrium of this game? A) Firm A invests, and Firm B doesn't invest. B) Firm A doesn't invest, and Firm B invests. C) Firm A doesn't invest, and Firm B doesn't invest. D) Firm A invests, and Firm B invests.  
What is the Nash equilibrium of this game?


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