Refer to the payoff matrix below. In reference to the Nash equilibrium/equilibria in this game, which of the following is true?
Healthy Snacks and Best Treats are two firms competing in the health food snacks market. Both are considering introducing a new health food snack made purely of dried power fruits. The payoff matrix shows their net economic profit in millions for the different strategies.
A) Best Treats Introduce and Healthy Snacks Introduce is a Nash equilibrium.
B) Best Treats Do Not Introduce and Healthy Snacks Do Not Introduce is a Nash equilibrium.
C) Best Treats Do Not Introduce and Healthy Snacks Introduce is a Nash equilibrium.
D) There are no Nash equilibria in this game.
C) Best Treats Do Not Introduce and Healthy Snacks Introduce is a Nash equilibrium.
You might also like to view...
Deflation refers to a situation in which
A) the inflation rate decreases. B) the average of all prices is falling. C) there is a recession and inflation. D) prices are not changing.
The entrepreneur
A. runs his or her own business and risks his or her own money. B. does not necessarily run her or his own business nor risks her or his own money. C. runs his or her own business, but does not necessarily risk his or her own money. D. does not necessarily run her or his own business, but does risk her or his own money
Assume that your state government has placed a price ceiling of $.20 per kilowatt hour on electricity. The equilibrium price per kilowatt hour for electricity is $.25. The government's action will result in
A) a surplus of electricity in the electricity market. B) an increase in the price of electricity to $.25 per kilowatt hour. C) an increase in producer surplus. D) a deadweight loss.
More stable macroeconomic policy does not contribute to less variability in real output
a. True b. False Indicate whether the statement is true or false