The accompanying matrix depicts two firms in a single-stage duopoly game.Each firm makes its decision without knowledge of the other firm's decision.The payoffs for each firm represent economic profits,and each firm strictly prefers more economic profit than less.If X is greater than $3,500,then there:

A) is only one Nash equilibrium, and this game would be considered a prisoner's dilemma.
B) are two Nash equilibria, and this game would be considered a prisoner's dilemma.
C) are three Nash equilibria, and this game would be considered a prisoner's dilemma.
D) is only one Nash equilibrium, and this game would not be considered a prisoner's dilemma.
E) are two Nash equilibria, and this game would not be considered a prisoner's dilemma.

Question

The accompanying matrix depicts two firms in a single-stage duopoly game.Each firm makes its decision without knowledge of the other firm's decision.The payoffs for each firm represent economic profits,and each firm strictly prefers more economic profit than less.If X is greater than $3,500,then there:

A) is only one Nash equilibrium, and this game would be considered a prisoner's dilemma. 
B) are two Nash equilibria, and this game would be considered a prisoner's dilemma. 
C) are three Nash equilibria, and this game would be considered a prisoner's dilemma. 
D) is only one Nash equilibrium, and this game would not be considered a prisoner's dilemma. 
E) are two Nash equilibria, and this game would not be considered a prisoner's dilemma.

Quizplus · Accepted Answer

The Answer of The accompanying matrix depicts two firms in a single-stage duopoly game.Each firm makes its decision without knowledge of the other firm's decision.The payoffs for each firm represent economic profits,and each firm strictly prefers more economic profit than less.If X is greater than $3,500,then there:

A) is only one Nash equilibrium, and this game would be considered a prisoner's dilemma. 
B) are two Nash equilibria, and this game would be considered a prisoner's dilemma. 
C) are three Nash equilibria, and this game would be considered a prisoner's dilemma. 
D) is only one Nash equilibrium, and this game would not be considered a prisoner's dilemma. 
E) are two Nash equilibria, and this game would not be considered a prisoner's dilemma.

The Accompanying Matrix Depicts Two Firms in a Single-Stage Duopoly