Multiple Choice
The payoff matrix below shows the payoffs to Firms A and B from producing different levels of output.The numbers in parentheses are (payoff to A,payoff to B) . TABLE 11-3
-Refer to Table 11-3.From the payoff matrix we can infer that
A) it is optimal for Firm A to produce 1000 units of output regardless of what Firm B is doing.
B) both firms are indifferent between an equilibrium (Produce 1000 units,Produce 1000 units) and (Produce 2000 units,Produce 2000 units) .
C) it is optimal for Firm A to produce 2000 units of output regardless of what Firm B is doing.
D) it is optimal for Firm B to produce 1000 units of output regardless of what Firm A is doing.
E) there is no Nash equilibrium in the game.
Correct Answer:

Verified
Correct Answer:
Verified
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