According to the figure shown, both players:
A)will cooperate in an attempt to reach a stable equilibrium, but will not achieve it.
B)will act in self-interest and achieve a stable, but less than optimum, equilibrium.
C)will act in self-interest and achieve an optimum equilibrium that is stable.
D)have an incentive to charge a low price and undercut the competition.

Question

According to the figure shown, both players:
A)will cooperate in an attempt to reach a stable equilibrium, but will not achieve it. 
B)will act in self-interest and achieve a stable, but less than optimum, equilibrium. 
C)will act in self-interest and achieve an optimum equilibrium that is stable. 
D)have an incentive to charge a low price and undercut the competition.

Quizplus · Accepted Answer

The Answer of  According to the figure shown, both players:
A)will cooperate in an attempt to reach a stable equilibrium, but will not achieve it. 
B)will act in self-interest and achieve a stable, but less than optimum, equilibrium. 
C)will act in self-interest and achieve an optimum equilibrium that is stable. 
D)have an incentive to charge a low price and undercut the competition.

According to the Figure Shown, Both Players