Question

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 | | :--- | :---: | :---: | | Low Output | 25, 25 | 40, 5 | | High Output | 15, X | 30, Y | 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 |
| :--- | :---: | :---: |
| **Low Output** | 25, 25 | 40, 5 |
| **High Output** | 15, X | 30, Y |

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 |
| :— | :—: | :—: |
| **Low Output** | 25, 25 | 40, 5 |
| **High Output** | 15, X | 30, Y |

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.

Added by Brian G.

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