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Figure: Payoff Matrix for Gehrig and Gabriel
-(Figure: Payoff Matrix for Gehrig and Gabriel)Use Figure: Payoff Matrix for Gehrig and Gabriel.The figure describes two people who sell handmade Carey Price figurines in Montreal.Both Gehrig and Gabriel have two strategies available to them: to produce 5 000 figurines each month or to produce 7 000 figurines each month.If both follow a tit-for-tat strategy,equilibrium will be reached when Gehrig produces _____ figurines and Gabriel produces _____ figurines.
A) 5 000;5 000
B) 7 000;7 000
C) 7 000;5 000
D) 5 000;7 000

Question

Use the following to answer questions :
Figure: Payoff Matrix for Gehrig and Gabriel 
-(Figure: Payoff Matrix for Gehrig and Gabriel)Use Figure: Payoff Matrix for Gehrig and Gabriel.The figure describes two people who sell handmade Carey Price figurines in Montreal.Both Gehrig and Gabriel have two strategies available to them: to produce 5 000 figurines each month or to produce 7 000 figurines each month.If both follow a tit-for-tat strategy,equilibrium will be reached when Gehrig produces _____ figurines and Gabriel produces _____ figurines.
A) 5 000;5 000 
B) 7 000;7 000 
C) 7 000;5 000 
D) 5 000;7 000

Quizplus · Accepted Answer

In a tit-for-tat strategy, each player mimics the other's previous action. If both start by producing 5,000 figurines and continue to do so, they will reach equilibrium at 5,000 figurines each.

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