Refer to the Following Game What Are the Nash Equilibrium Strategies for Firm a and

question 121

Multiple Choice

Refer to the following game. $\begin{array}{l}\quad\quad\quad\quad\quad\text { Firm B }\\\text { Firm A}\begin{array}{|l|l|l|}\hline & \text {Low Price } & \text { High Price } \\\hline \text {Low Price } & (10,9) & (15,8) \\\hline \text { High Price } & (-10,7) & (11,11) \\\hline\end{array}\end{array}$ What are the Nash equilibrium strategies for firm A and firm B,respectively,in a one-shot game?

• A) (low price, low price)
• B) (high price, high price)
• C) (low price, high price)
• D) (low price, low price) and (high price, high price)

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Definitions:

Alternatives

Different options or choices available to replace or serve as substitutes for something else.

High Demand

A market condition where the desire and readiness of consumers to purchase a product significantly exceeds the supply, often leading to increased prices.

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Enrollment

The process of registering or entering into a system, often used in the context of education or services.