The payoff matrix below shows the payoffs for Firm A and Firm B, each of whom can either "cooperate" or "cheat". The numbers in parentheses are (payoff for A, payoff for B). $$\begin{array}{l}
\begin{array} { | l | l | l | l | }
\hline & & \text { Firm B } & \
\hline & & \text { Cooperate } & \text { Cheat } \
\hline \text { Firm A } & \text { Cooperate } & ( 30,30 ) & ( 10 , x ) \
\hline & \text { Cheat } & ( x , 10 ) & ( 20,20 ) \
\hline
\end{array}\
\text { TABLE 11- } 2
\end{array}$$
-Refer to Table 11- 2. If Firm A is indifferent between cheating or cooperating when Firm B chooses to cooperate, x must be equal to

Question

The payoff matrix below shows the payoffs for Firm A and Firm B, each of whom can either "cooperate" or "cheat". The numbers in parentheses are (payoff for A, payoff for B). $$\begin{array}{l}
\begin{array} { | l | l | l | l | } 
\hline & & \text { Firm B } & \
\hline & & \text { Cooperate } & \text { Cheat } \
\hline \text { Firm A } & \text { Cooperate } & ( 30,30 ) & ( 10 , x ) \
\hline & \text { Cheat } & ( x , 10 ) & ( 20,20 ) \
\hline
\end{array}\
\text { TABLE 11- } 2
\end{array}$$
-Refer to Table 11- 2. If Firm A is indifferent between cheating or cooperating when Firm B chooses to cooperate, x must be equal to

Quizplus · Accepted Answer

If Firm A is indifferent between cheating or cooperating when Firm B cooperates, the payoff for A in both scenarios must be equal. Therefore, x must be 30 to make the payoffs (30,30) and (x,10) equal for Firm A.

The Payoff Matrix Below Shows the Payoffs for Firm a and Firm