-Refer to Figure 10

Multiple Choice

-Refer to Figure 10.1, which summarizes the payoffs to two aerospace companies that are considering investing $20 billion to develop a new, technologically advanced, commercial jumbo jet airliner for sale in the global marketplace. Payoffs are in billions of dollars. Suppose that the U.S. government offers Air America a $15 billion production subsidy. If larger payoffs are preferred, the Nash equilibrium strategy profile for this game is:

A) {Produce, Produce}.
B) {Produce, Don't produce}.
C) {Don't produce, Produce}.
D) {Don't produce, Don't produce}.
E) This game has multiple Nash equilibrium.