The figure shown displays the choices that could be made by two firms in an industry: Tesla and Ford. Both companies are trying to decide whether or not to invest in research and development. Tesla will make a decision first, and then Ford will make a decision after observing Tesla's choice. The payoffs are the profits (in millions)these companies will earn as a result of their choices.What profits can we predict Tesla will earn given the outcome of this game?
A)$50 million
B)$70 million
C)$10 million
D)$40 million

Question

The figure shown displays the choices that could be made by two firms in an industry: Tesla and Ford. Both companies are trying to decide whether or not to invest in research and development. Tesla will make a decision first, and then Ford will make a decision after observing Tesla's choice. The payoffs are the profits (in millions)these companies will earn as a result of their choices.What profits can we predict Tesla will earn given the outcome of this game?
A)$50 million 
B)$70 million 
C)$10 million 
D)$40 million

Quizplus · Accepted Answer

The Answer of  The figure shown displays the choices that could be made by two firms in an industry: Tesla and Ford. Both companies are trying to decide whether or not to invest in research and development. Tesla will make a decision first, and then Ford will make a decision after observing Tesla's choice. The payoffs are the profits (in millions)these companies will earn as a result of their choices.What profits can we predict Tesla will earn given the outcome of this game?
A)$50 million 
B)$70 million 
C)$10 million 
D)$40 million

The Figure Shown Displays the Choices That Could Be Made