Reference no: EM1372725
Scenario A Consider the following game: Payoffs are in millions of dollars.
Camden Inc.
Put Poison Pill
In Turbo Tech Dump Cash Assets
of Zamboni Tech
ABC Corporation Buy Turbo Tech -$100, -$1 $2, -$0.5
Buy Zamboni Tech 1, -$1 -$0.5, -$0.5
.In the game in Scenario A, what is the Nash equilibrium?
(Points : 3)
The strategy pair associated with -$100, -$1.
The strategy pair associated with $2, -$.5.
The strategy pair associated with $1, -$1.
The strategy pair associated with -$.5, -$.5.
There is no Nash equilibrium in pure strategies.
6. Scenario CC Consider the following game:
It costs each company Brokely $3,000 per period to use filters that avoid polluting the lake. However, each firm must use the lake's water in production, so it is also costly to have a polluted lake. The cost to each firm of dealing with water from a polluted lake is $2000 times the number of polluting firms.
Avale, Corp.
Pollute Don't Pollute
Burgess, Inc. Pollute -$4,000, -$4,000 -$2,000, -$5,000
Don't Pollute -$5,000, -$2,000 -$3,000, -$3,000
What is true about dominant strategies in the game in Scenario CC?
"Pollute" is a dominant strategy for both firms.
"Pollute" is a dominant strategy for Burgess only.
"Don't Pollute" is a dominant strategy for both firms.
"Don't Pollute" is a dominant strategy for Burgess only.
There are no dominant strategies.
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