-The above figure shows a payoff matrix for two firms,A and B,that must choose between selling basic computers or advanced computers.How many Nash equilibria are there?
A) 0
B) 1
C) 2
D) 4

Question

-The above figure shows a payoff matrix for two firms,A and B,that must choose between selling basic computers or advanced computers.How many Nash equilibria are there?
A) 0 
B) 1 
C) 2 
D) 4

Quizplus · Accepted Answer

A Nash equilibrium occurs when each player's strategy is optimal given the other player's strategy. Without the specific payoff matrix, we can't identify the exact equilibria, but generally, in games like these, multiple Nash equilibria can exist depending on the payoffs for each strategy combination. For example, if both firms choosing the same type of computer (either both choosing basic or both choosing advanced) results in the highest payoff for each given the other's choice, then there would be two Nash equilibria.

-The Above Figure Shows a Payoff Matrix for Two Firms,A