Table 17-24
Two firms are considering going out of business and selling their assets. Each considers what happens if the other goes out of business. The payoff matrix below shows the net gain or loss to each firm.
-Refer to Table 17-24. What is the Nash equilibrium?
A)A and B both stay in business
B)A stays in business, B sells
C)B stays in business, A sells
D)Both A and B sell

Question

Table 17-24
Two firms are considering going out of business and selling their assets. Each considers what happens if the other goes out of business. The payoff matrix below shows the net gain or loss to each firm. 
-Refer to Table 17-24. What is the Nash equilibrium?
A)A and B both stay in business 
B)A stays in business, B sells 
C)B stays in business, A sells 
D)Both A and B sell

Quizplus · Accepted Answer

The Answer of Table 17-24
Two firms are considering going out of business and selling their assets. Each considers what happens if the other goes out of business. The payoff matrix below shows the net gain or loss to each firm. 
-Refer to Table 17-24. What is the Nash equilibrium?
A)A and B both stay in business 
B)A stays in business, B sells 
C)B stays in business, A sells 
D)Both A and B sell

Table 17-24 Two Firms Are Considering Going Out of Business and Selling