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-The Above Figure Shows the Payoff to Two Airlines,A and B,of

Question 31

Multiple Choice

-The above figure shows the payoff to two airlines,A and B,of serving a particular route.If the two airlines must decide simultaneously,what will happen if the government offers a $30 subsidy to airlines that serve this route? A) The Nash equilibrium remains the same. B) Only firm A will have a dominant strategy. C) Both firms will choose to enter the market. D) Joint profits will be maximized.
-The above figure shows the payoff to two airlines,A and B,of serving a particular route.If the two airlines must decide simultaneously,what will happen if the government offers a $30 subsidy to airlines that serve this route?


A) The Nash equilibrium remains the same.
B) Only firm A will have a dominant strategy.
C) Both firms will choose to enter the market.
D) Joint profits will be maximized.

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