-Consider the Static Games Depicted in Figures 10

Multiple Choice

-Consider the static games depicted in Figures 10.3 and 10.4 which summarize in billions of dollars producer and consumer surpluses from alternative export-subsidy strategies by the U.S. and Japan. If the export subsidies are for the benefit of overall national welfare, the Cournot-Nash equilibrium strategy profile is:

A) {No subsidy, No subsidy}.
B) {No subsidy, Subsidy}.
C) {Subsidy, No subsidy}.
D) {Subsidy, Subsidy}.
E) Answers a or d are correct.