-Consider the Game Depicted in Figure 14

Multiple Choice

-Consider the game depicted in Figure 14.10. in the text If a motorist hits a pedestrian, the pedestrian incurs accident costs of $50. The cost of being diligent for both players is $5. If both players are diligent, the probability that an accident will occur is 5 percent. The Nash equilibrium strategy profile for this game is:

A) {Negligent, Negligent}.
B) {Diligent, Negligent}.
C) {Negligent, Diligent}.
D) {Diligent, Diligent}.
E) Answers b and c are correct.