Multiple Choice
The following payoff matrix shows the outcomes for the United States and Russia from relying on conventional weapons versus atomic weapons in a military conflict. The percentages refer to the fraction of the population that would die. This situation above illustrates a positional externality because:
A) using atomic weapons is a dominated strategy.
B) using atomic weapons improves each country's outcome but hurts the other country.
C) the game does not have a Nash equilibrium.
D) no matter what kind of weapons each country chooses, many people will die.
Correct Answer:

Verified
Correct Answer:
Verified
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