Suppose that you are a manager. You are considering whether or not to monitor employees with the payoffs in the normal-form game shown below.ManagerWorker??WorkShirk?Monitor-1,11,-1?Don't Monitor1,-1-1,1Which of the following pairs of strategies constitutes a Nash equilibrium?
A. Manager monitors and worker shirks.
B. Manager does not monitor and worker works.
C. Manager monitors and worker works.
D. None of the answers is correct.
Answer: D
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