The payoff matrix below shows the payoffs to Firms A and B from producing different levels of output.The numbers in parentheses are (payoff to A,payoff to B) .
TABLE 11-3
-Refer to Table 11-3.The Nash equilibrium in this game is
A) (Firm A: produce 1000 units,Firm B: produce 1000 units) .
B) (Firm A: produce 2000 units,Firm B: produce 1000 units) .
C) (Firm A: produce 2000 units,Firm B: produce 2000 units) .
D) (Firm A: produce 1000 units,Firm B: produce 2000 units) .
E) non-existent.
Correct Answer:
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