Consider the following game in which two firms decide how much of a homogeneous good to produce. The annual profit payoffs for each firm are stated in the cell of the game matrix, and Firm A's payoffs appear first in the payoff pairs: Firm B - low output Firm B - high outputFirm A - low output 300, 250 200, 75Firm A - high output 200, 100 75, 000Suppose the technology decision between A and B will be made simultaneously. A) What is (are) the dominant strategy (strategies) in this game? Explain interms of the payoffs. B) Identify the Nash equilibrium (equilibria), if there is (are) any, for this simultaneous decision. Explain.
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Consider the following game in which two firms decide how much of a homogeneous good to produce. The...
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