(Figure: Payoff Matrix for Ajinomoto and ADM) Use Figure: Payoff Matrix for Ajinomoto and ADM.The Nash equilibrium combination occurs when ADM produces _ million pounds and Ajinomoto produces _ million pounds.

A) 30;30
B) 40;40
C) 30;40
D) 40;30

Question

(Figure: Payoff Matrix for Ajinomoto and ADM) Use Figure: Payoff Matrix for Ajinomoto and ADM.The Nash equilibrium combination occurs when ADM produces _____ million pounds and Ajinomoto produces _____ million pounds.

A) 30;30
B) 40;40
C) 30;40
D) 40;30

Kaylynn Armstrong · Accepted Answer

Final Answer : B, Explanation :  The Nash equilibrium occurs when both firms choose strategies such that neither has an incentive to deviate unilaterally. In this case, both producing 40 million pounds is the equilibrium where neither firm can benefit by changing their production level while the other firm's production remains constant.

(Figure: Payoff Matrix for Ajinomoto and ADM) Use Figure: Payoff Matrix for Ajinomoto and ADM.The Nash equilibrium combination occurs when ADM produces _ million pounds and Ajinomoto produces _ million pounds.

A) 30;30
B) 40;40
C) 30;40
D) 40;30

Definitions

Learning Objectives

Learning Objectives

Related questions

(Figure: Payoff Matrix for Ajinomoto and ADM) Use Figure: Payoff Matrix for Ajinomoto and ADM.The Nash equilibrium combination occurs when ADM produces _____ million pounds and Ajinomoto produces _____ million pounds.A) 30;30B) 40;40C) 30;40D) 40;30

Definitions

Learning Objectives

Learning Objectives

Related questions

(Figure: Payoff Matrix for Ajinomoto and ADM) Use Figure: Payoff Matrix for Ajinomoto and ADM.The Nash equilibrium combination occurs when ADM produces _ million pounds and Ajinomoto produces _ million pounds.

A) 30;30
B) 40;40
C) 30;40
D) 40;30