-Two firms are competing in a duopoly and are trying to decide which price to set.The two prices under consideration are a high monopoly price and a low competitive level.If both seller A and seller B chose the monopoly price,each will make $20 million of economic profit.However,if one picks the monopoly price while the other picks the competitive price,the high-price firm will lose $1 million while the low-price firm will make $32 million.If both sell at the competitive level,they both make zero economic profit.Complete the payoff matrix below and determine the Nash equilibrium.
Definitions:
Null Hypothesis
A statement used in hypothesis testing that assumes no effect or no difference exists between two or more sets of data.
Hypothesized Value
A specific value proposed as existing or being true within the context of a statistical hypothesis test.
Null Hypothesis
A default statement that indicates no effect, difference, or relationship between two or more variables in an experiment.
Alternative Hypothesis
The hypothesis that is tested against the null hypothesis, usually representing the notion of a difference or effect.
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