The Table Below Shows the Payoff Matrix in the Form

question 60

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. $\begin{array}{c}\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Firm B }\\\text { Firm A }\begin{array}{|l|l|l|}\hline & \text { Invest } & \text { Not Invest } \\\hline {\text { Invest }} & \$ 20 \text { for } \mathrm{A} & \$ 70 \text { for } \mathrm{A} \\& \$ 20 \text { for } \mathrm{B} & \$ 5 \text { for } \mathrm{B} \\\hline {\text { Not Invest }} & \$ 5 \text { for } \mathrm{A} & \$ 50 \text { for } \mathrm{A} \\& \$ 70 \text { for } \mathrm{B} & \$ 50 \text { for B } \\\hline\end{array}\end{array}$
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:

Abolitionists

Individuals and groups who advocated for the immediate end of slavery and the emancipation of slaves, active especially in the 19th century.

Executive Branch

is one of the three branches of government, tasked with enforcing laws passed by the legislature, headed by the President in the United States or similar leadership positions in other countries.

Jackson's Presidency

The period of American history from 1829 to 1837 when Andrew Jackson served as the President of the United States, noted for his populist policies and the "Trail of Tears."

Eligible Voters

Individuals who meet the requirements set by law to vote in an election.