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:

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

Question

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:

What is the Nash equilibrium for this game?

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

Quizplus · Accepted Answer

The Answer of 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:

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

Consider the Following Game in Which Two Firms Decide How