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The Payoff Matrix Below Shows the Payoffs (In Millions of Dollars)

Question 24

Multiple Choice

The payoff matrix below shows the payoffs (in millions of dollars) for two firms, A and B, for two different strategies, investing in new capital or not investing in new capital. The payoff matrix below shows the payoffs (in millions of dollars)  for two firms, A and B, for two different strategies, investing in new capital or not investing in new capital.   An industry spy comes to firm B and claims to know what firm A has decided. Given that each firm already knows the payoff matrix, how much would this information be worth to firm B? A) $0. B) $50 million. C) $30 million. D) $70 million. An industry spy comes to firm B and claims to know what firm A has decided. Given that each firm already knows the payoff matrix, how much would this information be worth to firm B?


A) $0.
B) $50 million.
C) $30 million.
D) $70 million.

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