38) The table given below represents the payoff matrix of firms A and B, when they choose to produce either high output or low output. In each cell, the figure on the left indicates Firm B's payoffs and the figure on the right indicates Firm A's payoffs. Low Output High Output 25 5. Low Output 25 40 High Output 15 30 If X = 10 and Y = 15, then which of the following conclusions can be drawn from the information given in the table? a. The game has a Nash equilibrium and a dominant-strategy equilibrium. b. The game has a Nash equilibrium but not a dominant-strategy equilibrium. c. The game does not have a Nash equilibrium but has a dominant-strategy equilibrium. d. The game has neither a Nash equilibrium nor a dominant-strategy equilibrium.

38) The table given below represents the payoff matrix of firms A and B, when they choose to produce either high output or low output. In each cell, the figure on the left indicates Firm B's payoffs and the figure on the right indicates Firm A's payoffs. Low Output High Output 25 5. Low Output 25 40 High Output 15 30 If X = 10 and Y = 15, then which of the following conclusions can be drawn from the information given in the table? a. The game has a Nash equilibrium and a dominant-strategy equilibrium. b. The game has a Nash equilibrium but not a dominant-strategy equilibrium. c. The game does not have a Nash equilibrium but has a dominant-strategy equilibrium. d. The game has neither a Nash equilibrium nor a dominant-strategy equilibrium.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter15: Imperfect Competition

Section: Chapter Questions

Problem 15.8P

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