The only two firms in a market are trying to decide what price to charge. The payoff matrix for this duopoly game is shown below. The payoffs are thousands of dollars of economic profit. In the Nash equilibrium, A). Firm A and Firm B are both making $80,000 in economic profit. B). Firm A and Firm B are both making $75,000 in economic profit. C). Firm A is making $80,000 and Firm B is making $75,000 in economic profit. D). Firm A and Firm B are both making $60,000 in economic profit.
The only two firms in a market are trying to decide what price to charge. The payoff matrix for this duopoly game is shown below. The payoffs are thousands of dollars of economic profit. In the Nash equilibrium, A). Firm A and Firm B are both making $80,000 in economic profit. B). Firm A and Firm B are both making $75,000 in economic profit. C). Firm A is making $80,000 and Firm B is making $75,000 in economic profit. D). Firm A and Firm B are both making $60,000 in economic profit.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter11: Public Goods And Common Resources
Section: Chapter Questions
Problem 9PA
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The only two firms in a market are trying to decide what price to charge. The payoff matrix for this duopoly game is shown below. The payoffs are thousands of dollars of economic profit. In the Nash equilibrium,
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A). Firm A and Firm B are both making $80,000 in economic profit.
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B). Firm A and Firm B are both making $75,000 in economic profit.
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C). Firm A is making $80,000 and Firm B is making $75,000 in economic profit.
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D). Firm A and Firm B are both making $60,000 in economic profit.
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