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Refer to the Payoff Matrix

Question 68

Multiple Choice

Refer to the payoff matrix. Which of the following statements is true regarding the outcome of this game? A) Both firms will price high, and this outcome is a Nash equilibrium. B) Both firms will price low, and this outcome is a Nash equilibrium. C) Both firms will price high, but this outcome is not a Nash equilibrium. D) Both firms will price low, but this outcome is not a Nash equilibrium. Refer to the payoff matrix. Which of the following statements is true regarding the outcome of this game?


A) Both firms will price high, and this outcome is a Nash equilibrium.
B) Both firms will price low, and this outcome is a Nash equilibrium.
C) Both firms will price high, but this outcome is not a Nash equilibrium.
D) Both firms will price low, but this outcome is not a Nash equilibrium.

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