The above figure shows the payoff to two firms in an industry deciding to make an investment in worker safety. The Nash equilibrium
A) is for just one of the firms to make the investment.
B) is for both firms to make the investment.
C) is for neither firm to make the investment.
D) does not exist.
C
You might also like to view...
A change in the price of a good has no effect on the supply schedule.
Answer the following statement true (T) or false (F)
Transfer payments are an injection into the circular flow of income and expenditure model
a. True b. False Indicate whether the statement is true or false
What would be the statistical discrepancy for a current account balance of -$85 billion and a capital account balance of $80 billion?
a. -$165 billion b. -$5 billion c. $5 billion d. $165 billion
When calculating the price elasticity of demand, we assume that the price of the good changes while all other variables affecting
a. demand except buyers' incomes remain constant b. demand except the population size remain constant c. demand and supply remain constant d. supply remain constant e. demand remain constant