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azamat
4 years ago
14

What is the nash equilibrium for this​ game?

Business
1 answer:
gavmur [86]4 years ago
5 0
<span>The  nash</span> equilibrium would be A. <span> bp and the mini-mart will both not advertise.
The nash equilibrium happens when all of the competitors choose the decision that give the optimal outcome for both of them.
If Bp and mini-mart both choose not to advertise they both will have a similar profit.</span>
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Explanation:

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The correct answer to the following question will be "keeping the product line since they would lose an extra $40000 if they dropped".

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                                              Keep                                         Drop

Loss                             $100000 (given)                                    -

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Loss                                     $100000                                    140000

If dropped, so the $40000 damage would be included. Such that the correct approach is "keeping the product line since they would lose an extra $40000 if they dropped."

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