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Answer the Question Based on the Payoff Matrix for a Duopoly

Question 97

Multiple Choice

Answer the question based on the payoff matrix for a duopoly, in which the numbers indicate the profit from following either an international strategy or a national strategy. Which combination of payoffs would represent a Nash equilibrium? A) $3M for both firms. B) $17M for both firms. C) $15 for firm A and $5 for firm B. D) $5 for firm A and $15 for firm B. Answer the question based on the payoff matrix for a duopoly, in which the numbers indicate the profit from following either an international strategy or a national strategy. Which combination of payoffs would represent a Nash equilibrium?


A) $3M for both firms.
B) $17M for both firms.
C) $15 for firm A and $5 for firm B.
D) $5 for firm A and $15 for firm B.

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