According to the figure shown:
A) there is no stable equilibrium to the game.
B) both players will act in their own self-interest and get a stable, but less than optimum, equilibrium.
C) both players will act in their own self-interest and get an optimum equilibrium that is stable.
D) both players have an incentive to charge a low price and undercut the competition.

Question

According to the figure shown:
A) there is no stable equilibrium to the game. 
B) both players will act in their own self-interest and get a stable, but less than optimum, equilibrium. 
C) both players will act in their own self-interest and get an optimum equilibrium that is stable. 
D) both players have an incentive to charge a low price and undercut the competition.

Quizplus · Accepted Answer

The Answer of  According to the figure shown:
A) there is no stable equilibrium to the game. 
B) both players will act in their own self-interest and get a stable, but less than optimum, equilibrium. 
C) both players will act in their own self-interest and get an optimum equilibrium that is stable. 
D) both players have an incentive to charge a low price and undercut the competition.

According to the Figure Shown