-The above figure shows the payoff matrix for two firms,A and B,choosing to produce a basic computer or an advanced computer.How many pure-strategy Nash equilibria are in this game?
A)0
B)1
C)2

Question

-The above figure shows the payoff matrix for two firms,A and B,choosing to produce a basic computer or an advanced computer.How many pure-strategy Nash equilibria are in this game?
A)0 
B)1 
C)2

Quizplus · Accepted Answer

In a Nash equilibrium, each player's strategy is the best response to the other player's strategy. A pure-strategy Nash equilibrium occurs when each player chooses a single strategy that results in the highest payoff, given the other player's choice. Without the specific payoff matrix, we can't identify the exact equilibria, but the question implies there are multiple scenarios where each firm's choice of producing a basic or advanced computer could lead to a stable outcome where neither firm has an incentive to deviate from their chosen strategy. This suggests that there are 2 pure-strategy Nash equilibria in this game.

-The Above Figure Shows the Payoff Matrix for Two Firms,A