Scenario: The payoff matrix given below shows the payoffs to two firms in millions of U.S. dollars for choosing two alternative strategies. The first number listed in each cell is the payoff to the row player, and the second number listed is the payoff to the column player.

-Refer to the scenario above.What is the payoff to Firm A in equilibrium?
A) $2.4 million
B) $2.6 million
C) $5.2 million
D) $3.0 million

Question

Scenario: The payoff matrix given below shows the payoffs to two firms in millions of U.S. dollars for choosing two alternative strategies. The first number listed in each cell is the payoff to the row player, and the second number listed is the payoff to the column player.
 
-Refer to the scenario above.What is the payoff to Firm A in equilibrium?
A) $2.4 million 
B) $2.6 million 
C) $5.2 million 
D) $3.0 million

Quizplus · Accepted Answer

The payoff to Firm A in equilibrium is $5.2 million, as this is the amount Firm A receives when both firms choose their optimal strategies in a Nash equilibrium.

Scenario: the Payoff Matrix Given Below Shows the Payoffs to Two