Multiple Choice
For the following question
Consider a simultaneous move game between a union and a company.If both the parties bargain hard,each would gain nothing.If only one party bargains hard the accommodating party gets a profit of $1 million while the bargaining party gets a $5 million,while if they both accommodate,they each get $3 million.
-Is this Nash equilibrium efficient?
A) Yes,because the sum of payoffs is highest
B) No,because both the parties can do better
C) No,because both the parties are maximizing their profits
D) All of the above
Correct Answer:

Verified
Correct Answer:
Verified
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