Consider the following payoff matrix for two oligopolists that are deciding what quantity to produce: Firm 2 High Quantity Low Quantity $70k; $70k $130k; $20k High Quantity Firm 1 $20k; $130k $100k; $100k Low Quantity In the Nash equilibrium of this game, what are the payoffs to each firm? O a. Firm 1 receives $130k and Firm 2 receives $20k O b. Firm 1 receives $20k and Firm 2 receives $130k. O c. Firm 1 receives $100k and Firm 2 receives $100k. O d. Firm 1 receives $70k and Firm 2 receives $70k.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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Chapter12: Price And Output Determination: Oligopoly
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Consider the following payoff matrix for two oligopolists that are deciding what quantity to produce:
Firm 2
High
Quantity
Low
Quantity
$70k; $70k
$130k; $20k
High
Quantity
Firm 1
$20k; $130k
$100k; $100k
Low
Quantity
In the Nash equilibrium of this game, what are the payoffs to each firm?
O a. Firm 1 receives $130k and Firm 2 receives $20k.
O b. Firm 1 receives $20k and Firm 2 receives $130k.
O c. Firm 1 receives $100k and Firm 2 receives $100k.
O d. Firm 1 receives $70k and Firm 2 receives $70k.
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Transcribed Image Text:10:04 PM cb = Chegg Economics Vo LTE expert.chegg.com/expertqna Time remaining: 00:09:49 Consider the following payoff matrix for two oligopolists that are deciding what quantity to produce: Firm 2 High Quantity Low Quantity $70k; $70k $130k; $20k High Quantity Firm 1 $20k; $130k $100k; $100k Low Quantity In the Nash equilibrium of this game, what are the payoffs to each firm? O a. Firm 1 receives $130k and Firm 2 receives $20k. O b. Firm 1 receives $20k and Firm 2 receives $130k. O c. Firm 1 receives $100k and Firm 2 receives $100k. O d. Firm 1 receives $70k and Firm 2 receives $70k. Answer Skip 4G Exit 2 ¹20%
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