-Intel and AMD Are a Duopoly That Produces CPU Chips

question 88

Multiple Choice

-Intel and AMD are a duopoly that produces CPU chips.Intel and AMD can conduct R&D or they cannot conduct R&D.The table above shows the payoff matrix for the two firms.If AMD is playing a tit-for-tat strategy,then if Intel conducted R&D last period,AMD

• A) definitely conducts R&D this period.
• B) definitely does not conduct R&D this period.
• C) might conduct R&D or might not conduct R&D, depending on Intel's profit.
• D) might conduct R&D or might not conduct R&D, depending on its profit.
• E) might conduct R&D or might not conduct R&D, but more information is needed to determine its action.

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