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nakungth nakungth
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6 years ago
Consider the following game in which two firms decide how much of a homogeneous good to produce.  The annual profit payoffs for each firm are stated in the cell of the game matrix, and Firm A's payoffs appear first in the payoff pairs:

   Firm B - low output   Firm B - high output
Firm A - low output   300, 250   200, 100
Firm A - high output   200, 75   75, 100

What is the Nash equilibrium for this game?
A) Both firms producer low levels of output
B) Both firms produce high levels of output
C) Firm A produces low levels of output, and Firm B produces high output.
D) Firm A produces high levels of output, and Firm B produces low output.
E) There is more than one Nash equilibrium for this game
Textbook 
Microeconomics

Microeconomics


Edition: 8th
Author:
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CanihCanih
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6 years ago
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nakungth Author
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6 years ago
this is exactly what I needed
GeorgeNeist
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Yesterday
Thank you, thank you, thank you!
54321abs
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2 hours ago
This calls for a celebration Person Raising Both Hands in Celebration
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