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In the Game Shown Below, Firms 1 and 2 Must

Question 137

Multiple Choice

In the game shown below, firms 1 and 2 must independently decide whether to charge high or low prices. In the game shown below, firms 1 and 2 must independently decide whether to charge high or low prices. Suppose the game is infinitely repeated. Then the best the firms could do in a Nash equilibrium is to earn _________ per period. A) (0, 0) B) (5, -5) C) (-5, 5) D) (10, 10) Suppose the game is infinitely repeated. Then the "best" the firms could do in a Nash equilibrium is to earn _________ per period.


A) (0, 0)
B) (5, -5)
C) (-5, 5)
D) (10, 10)

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