Refer to the Following Game

question 15

Multiple Choice

Refer to the following game. What are the Nash equilibrium strategies for firm A and firm B respectively?

• 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)

---

Definitions:

Patents

Legal documents granting an inventor exclusive rights to their invention, preventing others from making, using, or selling the invention for a certain period of time.

Pharmaceutical Companies

Organizations dedicated to developing, producing, and marketing drugs or pharmaceuticals licensed for use as medications.

Monopoly Position

A situation in which a single company or entity has exclusive control over a particular market or industry, eliminating competition.

Lower Prices

A decrease in the general level of prices of goods and services, making them more affordable to consumers.