The Table Below Shows the Payoff Matrix in the Form

question 12

Multiple Choice

The table below shows the payoff matrix in the form of short term profits for two firms,A and B,for two different strategies,investing in new capital or not investing in new capital.Payoffs are in millions of dollars. $\begin{array}{c}\quad \quad \quad \quad \quad \quad \quad \text { Firm } B\\\text { Firm } A\begin{array}{|l|l|l|}\hline& \text { Invest } & \text { Not Invest } \\\hline {\text { Invest }} & \$ 20 \text { for } \mathrm{A} & \$ 70 \text { for } \mathrm{A} \\& \$ 20 \text { for } \mathrm{B} & \$ 5 \text { for } \mathrm{B} \\\hline{\text { Not Invest }} & \$ 5 \text { for } \mathrm{A} & \$ 50 \text { for } \mathrm{A} \\& \$ 70 \text { for } \mathrm{B} & \$ 50 \text { for } \mathrm{B} \\\hline\end{array}\end{array}$
Refer to the figure above.An industrial spy from firm A comes to firm B and offers to pay B in exchange for B's certain and enforceable promise to not invest.What is the most that firm A will be willing to pay B to not invest?

• A)$0.
• B)$20 million.
• C)$35 million.
• D)$50 million.

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Definitions:

High Blood Pressure

A condition in which the force of the blood against the artery walls is too high, often leading to health problems such as heart disease.

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The act of tailoring adjustments or transformations to suit individual preferences or needs.

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To recognize the existence, validity, or legality of something or someone's efforts or achievements.

Wait Patiently

To remain in a state of rest or stand by without complaint while anticipating an outcome.