The payoff matrix below shows the payoffs (in millions of dollars) for two firms, A and B, for two different strategies, investing in new capital or not investing in new capital. An industry spy comes to firm B and offers to pay B in exchange for B's certain and enforceable promise to not invest. How much must the spy pay B?

A. At least $15 million.
B. At least $50 million.
C. $0
D. At least $35 million.


Answer: A

Economics

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