-Intel and AMD are a duopoly that produces CPU chips.Intel and AMD can conduct R&D or they cannot conduct R&D.The table above shows the payoff matrix for the two firms.If AMD is playing a tit-for-tat strategy,then if Intel conducted R&D last period,AMD
A) definitely conducts R&D this period.
B) definitely does not conduct R&D this period.
C) might conduct R&D or might not conduct R&D, depending on Intel's profit.
D) might conduct R&D or might not conduct R&D, depending on its profit.
E) might conduct R&D or might not conduct R&D, but more information is needed to determine its action.

Question

-Intel and AMD are a duopoly that produces CPU chips.Intel and AMD can conduct R&D or they cannot conduct R&D.The table above shows the payoff matrix for the two firms.If AMD is playing a tit-for-tat strategy,then if Intel conducted R&D last period,AMD
A) definitely conducts R&D this period. 
B) definitely does not conduct R&D this period. 
C) might conduct R&D or might not conduct R&D, depending on Intel's profit. 
D) might conduct R&D or might not conduct R&D, depending on its profit. 
E) might conduct R&D or might not conduct R&D, but more information is needed to determine its action.

Quizplus · Accepted Answer

The tit-for-tat strategy involves mimicking the opponent's previous move. If Intel conducted R&D last period, AMD, following a tit-for-tat strategy, will definitely conduct R&D this period.

-Intel and AMD Are a Duopoly That Produces CPU Chips