This table shows for the profits of firm a and firm b. Answer both parts a and b please Part a) Is firm 1 using a dominant strategy? What about for Firm b? Explain why or why not for each. Part b) Does this game have a Nash equilibrium? Explain why or why not.
This table shows for the profits of firm a and firm b. Answer both parts a and b please Part a) Is firm 1 using a dominant strategy? What about for Firm b? Explain why or why not for each. Part b) Does this game have a Nash equilibrium? Explain why or why not.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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This table shows for the profits of firm a and firm b.
Answer both parts a and b please
Part a) Is firm 1 using a dominant strategy? What about for Firm b? Explain why or why not for each.
Part b) Does this game have a Nash equilibrium? Explain why or why not.
![Firm b
Do Not Restrict
Restrict Output
Оuрut
Il= $0.5 billion
Firm (A
Do Not Restrict
Il= $1.3 billion
Output
I2= $0.5 billion
I2= $0.4 billion
II= $1 billion
II2 =$1 billion
II= $0.4 billion
Restrict Output
II= $1.3 billion](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2bf4b192-1693-4d0d-9c3b-b9efdc64f658%2F10ce21b2-4fd2-42ee-986e-4adeece63855%2Fxbtipl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Firm b
Do Not Restrict
Restrict Output
Оuрut
Il= $0.5 billion
Firm (A
Do Not Restrict
Il= $1.3 billion
Output
I2= $0.5 billion
I2= $0.4 billion
II= $1 billion
II2 =$1 billion
II= $0.4 billion
Restrict Output
II= $1.3 billion
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