Suppose That You Are a Manager Which of the Following Pairs of Strategies Constitutes a Nash

question 91

Multiple Choice

Suppose that you are a manager.You are considering whether or not to monitor employees with the payoffs in the normal-form game shown below. $\begin{array}{c}\text { Worker }\\\text { Manager}\begin{array}{|l|l|l|} \hline & \text { Work } & \text { Shirk } \\\hline & & \\\text { Monitor } & -1,1 & 1,-1 \\\hline \text { Don't } \\\text { Monitor }& 1,-1 & -1,1\\\hline\end{array}\end{array}$ Which of the following pairs of strategies constitutes a Nash equilibrium?

• A) Manager monitors and worker works.
• B) Manager does not monitor and worker works.
• C) Manager monitors and worker shirks.
• D) None of the preceding answers is correct.

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