The payoff matrix below shows the payoffs to Firms A and B from producing different levels of output. The numbers in parentheses are (payoff to A, payoff to B) . TABLE 11- 3
-Refer to Table 11- 3. From the payoff matrix we can infer that
A) there is no Nash equilibrium in the game.
B) it is optimal for Firm A to produce 1000 units of output regardless of what Firm B is doing.
C) it is optimal for Firm B to produce 1000 units of output regardless of what Firm A is doing.
D) both firms are indifferent between an equilibrium (Produce 1000 units, Produce 1000 units) and (Produce 2000 units, Produce 2000 units) .
E) it is optimal for Firm A to produce 2000 units of output regardless of what Firm B is doing.
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