Table 16.6
Two firms share a common fishery. One strategy available to the firms is to fish sustainably. This maintains a healthy breeding population of fish, and keeps the price of fish relatively high. The other strategy is to overfish. This reduces the breeding population and fish prices tend to fall. The game is represented in the following table.

-Refer to Table 16-6. If firm A uses its dominant strategy, its profit at the Nash Equilibrium will be:

Question

Table 16.6
Two firms share a common fishery. One strategy available to the firms is to fish sustainably. This maintains a healthy breeding population of fish, and keeps the price of fish relatively high. The other strategy is to overfish. This reduces the breeding population and fish prices tend to fall. The game is represented in the following table.
 
-Refer to Table 16-6. If firm A uses its dominant strategy, its profit at the Nash Equilibrium will be:

Quizplus · Accepted Answer

The Answer of Table 16.6
Two firms share a common fishery. One strategy available to the firms is to fish sustainably. This maintains a healthy breeding population of fish, and keeps the price of fish relatively high. The other strategy is to overfish. This reduces the breeding population and fish prices tend to fall. The game is represented in the following table.
 
-Refer to Table 16-6. If firm A uses its dominant strategy, its profit at the Nash Equilibrium will be:

Table 16.6 Two Firms Share a Common Fishery. One Strategy Available to Available