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The Accompanying Matrix Depicts Two Firms in a Single-Stage Duopoly

Question 67

Multiple Choice

The accompanying matrix depicts two firms in a single-stage duopoly game.Each firm makes its decision without knowledge of the other firm's decision.The payoffs for each firm represent economic profits,and each firm strictly prefers more economic profit than less.If X is greater than $3,500,then: The accompanying matrix depicts two firms in a single-stage duopoly game.Each firm makes its decision without knowledge of the other firm's decision.The payoffs for each firm represent economic profits,and each firm strictly prefers more economic profit than less.If X is greater than $3,500,then:   A) there is only one Nash equilibrium,and this game would be considered a prisoner's dilemma. B) there are two Nash equilibria,and this game would be considered a prisoner's dilemma. C) there are three Nash equilibria,and this game would be considered a prisoner's dilemma. D) there is only one Nash equilibrium,and this game would not be considered a prisoner's dilemma. E) there are two Nash equilibria,and this game would not be considered a prisoner's dilemma.


A) there is only one Nash equilibrium,and this game would be considered a prisoner's dilemma.
B) there are two Nash equilibria,and this game would be considered a prisoner's dilemma.
C) there are three Nash equilibria,and this game would be considered a prisoner's dilemma.
D) there is only one Nash equilibrium,and this game would not be considered a prisoner's dilemma.
E) there are two Nash equilibria,and this game would not be considered a prisoner's dilemma.

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