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

Question 36

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 from firm A comes to firm B and offers to pay B in exchange for B's certain and enforceable promise to not invest. What is the most that firm A will be willing to pay B to not invest? A) $30 million. B) $20 million. C) $35 million. D) $50 million. An industry spy from firm A comes to firm B and offers to pay B in exchange for B's certain and enforceable promise to not invest. What is the most that firm A will be willing to pay B to not invest?


A) $30 million.
B) $20 million.
C) $35 million.
D) $50 million.

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