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The Table Below Shows the Payoff Matrix in the Form

Question 40

Multiple Choice

The table below shows the payoff matrix in the form of short-run profit for two firms,A and B,for two different strategies,investing in new capital or not investing. The table below shows the payoff matrix in the form of short-run profit for two firms,A and B,for two different strategies,investing in new capital or not investing.   -Refer to the payoff matrix above.The outcome of the game is __________ with __________. A)  not a Nash equilibrium;both firms not investing B)  a Nash equilibrium;both firms not investing C)  a Nash equilibrium;firm A investing and firm B not investing D)  not a Nash equilibrium;two possible equilibria E)  a Nash equilibrium;both firms investing
-Refer to the payoff matrix above.The outcome of the game is __________ with __________.


A) not a Nash equilibrium;both firms not investing
B) a Nash equilibrium;both firms not investing
C) a Nash equilibrium;firm A investing and firm B not investing
D) not a Nash equilibrium;two possible equilibria
E) a Nash equilibrium;both firms investing

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