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##### Refer to the above payoff matrix

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Question

1. Refer to the above payoff matrix. Suppose that Speedy Bike and Power Bike are the only two bicycle manufacturing firms serving the market. Both can choose large or small advertising budgets. Is there a Nash equilibrium solution to this game?;A) There is no possible Nash equilibrium solution.;B) A Nash equilibrium can occur at either Cell B or C.;C) Cell A represents a Nash equilibrium.;D) Cell D represents a Nash equilibrium.;2.Refer to the above payoff matrix. Bob's Burgers and Sam's Sandwiches are competing restaurants in a small town. Both are considering adding pizza to their line of products. If this is a one-time simultaneous game;A) both firms have a dominant strategy to add pizza to their menu.;B) both firms have a dominant strategy to not add pizza to their menu.;C) a Nash equilibrium occurs either when both add pizza or both do not add pizza.;D) neither firm has a dominant strategy.;Problems with the matrices are included

Paper#31517 | Written in 18-Jul-2015

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