Table 17-24 Two Firms Are Considering Going Out of Business and Selling

question 31

Multiple Choice

Table 17-24
Two firms are considering going out of business and selling their assets. Each considers what happens if the other goes out of business. The payoff matrix below shows the net gain or loss to each firm.
-Refer to Table 17-24. What is the Nash equilibrium?

• A)A and B both stay in business
• B)A stays in business, B sells
• C)B stays in business, A sells
• D)Both A and B sell

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