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
Correct Answer:
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A)
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