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Question
The following table depicts two firms in a single-stage duopoly game. Each firm makes its decision without knowledge of the other firms decision. The payoffs for each firm represent economic profits, and each firm strictly prefers more economic profit than less. If X is greater than $3,500, then there is/are
a. only one Nash equilibrium, and this game would be considered a prisoners dilemma.
b. two Nash equilibriums, and this game would be considered a prisoners dilemma.
c. three Nash equilibriums, and this game would be considered a prisoners dilemma.
d. only one Nash equilibrium, and this game would not be considered a prisoners dilemma.
e. two Nash equilibriums, and this game would not be considered a prisoners dilemma.
Answer
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