Alice and Betsy are playing a game in which each can play either of two strategies, leave or stay.If both play the strategy leave, then each gets a payoff of $300.If both play the strategy stay, then each gets a payoff of $600.If one plays stay and the other plays leave, then the one who plays stay gets a payoff of $C and the one who plays leave gets a payoff of $D.When is the outcome where both play leave a Nash equilibrium? A)When $300 C and D $600 but not when $600 D B)Never, since $600 $300. C)Whenever D C and C $300. E)Whenever $300 C

Question

Alice and Betsy are playing a game in which each can play either of two strategies, leave or stay.If both play the strategy leave, then each gets a payoff of $300.If both play the strategy stay, then each gets a payoff of $600.If one plays stay and the other plays leave, then the one who plays stay gets a payoff of $C and the one who plays leave gets a payoff of $D.When is the outcome where both play leave a Nash equilibrium?
A)When $300 > C and D > $600 but not when $600 > D
B)Never, since $600 > $300.
C)Whenever D < $600.
D)When D > C and C > $300.
E)Whenever $300 > C

Quizplus · Accepted Answer

The Answer of Alice and Betsy are playing a game in which each can play either of two strategies, leave or stay.If both play the strategy leave, then each gets a payoff of $300.If both play the strategy stay, then each gets a payoff of $600.If one plays stay and the other plays leave, then the one who plays stay gets a payoff of $C and the one who plays leave gets a payoff of $D.When is the outcome where both play leave a Nash equilibrium?
A)When $300 > C and D > $600 but not when $600 > D
B)Never, since $600 > $300.
C)Whenever D < $600.
D)When D > C and C > $300.
E)Whenever $300 > C

Alice and Betsy Are Playing a Game in Which Each