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mrb0714 mrb0714
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A year ago

The payoff matrix below shows the payoffs to Firms A and B from producing different levels of output. The numbers in parentheses are (payoff to A, payoff to B).

Short description: A two by two matrix with columns representing Firm B and rows representing Firm A. Long description: The columns represent firm B. The column headers read, produce 1000 units and produce 2000 units. The row represents firm A. The row headers read, produce 1000 units and produce 2000 units. The first row reads, (100, 100) and (10, 150). The second row reads, (150, 10) and (30, 30).

TABLE 11-3

Refer to Table 11-3. From the payoff matrix we can infer that



▸ there is no Nash equilibrium in the game.

▸ both firms are indifferent between an equilibrium (Produce 1000 units, Produce 1000 units) and (Produce 2000 units, Produce 2000 units).

▸ it is optimal for Firm B to produce 1000 units of output regardless of what Firm A is doing.

▸ it is optimal for Firm A to produce 1000 units of output regardless of what Firm B is doing.

▸ it is optimal for Firm A to produce 2000 units of output regardless of what Firm B is doing.
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Microeconomics

Microeconomics


Edition: 17th
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JRAD814JRAD814
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mrb0714 Author
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A year ago
Smart ... Thanks!
momochiime
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Yesterday
Helped a lot
joyceess
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2 hours ago
Just got PERFECT on my quiz
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