Multiple Choice
What is the Nash Equilibrium of the game in the figure shown?
A) Firm 1 and Firm 2 invest.
B) Firm 1 invests and Firm 2 does not invest.
C) Firm 1 does not invest and Firm 2 invests.
D) Firm 1 and Firm 2 do not invest.
Correct Answer:
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