Refer to the accompanying payoff matrix.Which of the following is a Nash equilibrium?
A) Company A chooses Strategy 1 and Company B chooses Strategy 1.
B) Company A chooses Strategy 1 and Company B chooses Strategy 2.
C) Company A chooses Strategy 2 and Company B chooses Strategy 2.
D) Company A chooses Strategy 2 and Company B chooses Strategy 1.
E) None of the above.

Question

Refer to the accompanying payoff matrix.Which of the following is a Nash equilibrium? 
A) Company A chooses Strategy 1 and Company B chooses Strategy 1. 
B) Company A chooses Strategy 1 and Company B chooses Strategy 2. 
C) Company A chooses Strategy 2 and Company B chooses Strategy 2. 
D) Company A chooses Strategy 2 and Company B chooses Strategy 1. 
E) None of the above.

Quizplus · Accepted Answer

The Answer of Refer to the accompanying payoff matrix.Which of the following is a Nash equilibrium? 
A) Company A chooses Strategy 1 and Company B chooses Strategy 1. 
B) Company A chooses Strategy 1 and Company B chooses Strategy 2. 
C) Company A chooses Strategy 2 and Company B chooses Strategy 2. 
D) Company A chooses Strategy 2 and Company B chooses Strategy 1. 
E) None of the above.

Refer to the Accompanying Payoff Matrix