APFIVE Nash Equilibrium in a Duopoly
In a duopoly’s payoff matrix, if both firms select strategies that constitute a Nash equilibrium, what does this imply about their strategic choices?
A
Both firms are maximizing joint profits and will always cooperate.
B
One firm is dominating the market, which forces the other to eventually exit.
C
The equilibrium indicates that both firms are colluding to secure higher collective profits.
D
Neither firm can improve its payoff by unilaterally changing its strategy.
Question Leaderboard
| Rank | |||||
|---|---|---|---|---|---|
| #1 | jcbaird17 | 1 | 1 | 0m 00s | 100 |
| #2 | Ishaan.m.kurup | 1 | 2 | 0m 00s | 90 |
| #3 | kovidgupta08 | 1 | 1 | 0m 17s | 83 |
| #4 | serenanguyen0729 | 1 | 1 | 1m 29s | 11 |
| #5 | mqudah092 | 2 | 4 | 12h 18m | -44,126 |
Items per page:
10
1 – 5 of 5